- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 8. Currency Exchange Rates: Understanding Equilibrium Value
- Subject 5. The Impact of Balance of Payments Flows
CFA Practice Question
When the market is in "risk-on" mode, other things being equal, the value of the USD will:
A. appreciate.
B. not change.
C. depreciate.
Explanation: When investors' appetite for risk is high, their demand for safe haven assets such as USD will tend to decline, causing USD to depreciate.
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