Choose the best answer from the three options in each question.
1. When the value of a country's currency rises, it is said to _____.
depreciate
appreciate
inflate
2. Fluctuations in _____ can affect the price of imported goods.
exchange rates
inflation
profit margins
3. A weaker currency means that exports become _____.
more expensive
irrelevant
cheaper
4. Companies that trade internationally must keep an eye on _____ rates to manage their costs.
interest
employment
exchange
5. When the value of a currency drops, it is said to _____.
increase
6. _____ is the price at which one currency can be exchanged for another.
Exchange rate
Interest rate
Inflation
7. A strong currency makes imports _____.
harder to find
8. Businesses that operate in multiple countries often hedge against currency _____ to reduce risk.
growth
fluctuations
profit
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