Group of answer choices.
A. German tourists traveling abroad.
B. American tourists traveling in France.
C. Canadian firms selling in Germany.
D. Canadian investors with money investments in Germany.
Answer:
B. American tourists traveling in France.
Explanation:
A foreign exchange market can be defined as a type of market where the currency of a country is converted to that of another country.
For example, the conversion of the United States of America dollars into naira, rands, yen, pounds, euros, etc., at the foreign exchange market.
In this context, a stronger euro is less favorable for American tourists traveling in France because the currency of the Americans, which is the U.S dollars would exchange at a far lesser rate to the euros.
However, a stronger euro would be more favorable for German tourists that are traveling abroad, Canadian firms that trade or sells its products in Germany, and Canadian investors who are having money investments in Germany.
Note: Euro is the official currency (legal tender or money) of Germany.
Considering the available options, a stronger euro is less favorable for "American tourists traveling in France."
This is because the United States of America uses the dollar as currency, while European countries, including France, are using Euro.
Thus, should an American carry dollar to France, and meets a stronger Euro, has a value of money (dollar) would be reduced, and therefore would be less favorable to him.
Option A is wrong because German tourists traveling abroad are favorable to the German as the Euro is stronger.
Option C is wrong because Canadian firms selling in Germany would earn in Euro, thereby getting money with more value.
Option D is wrong because Canadian investors with money investments in Germany would earn in Euro.
Hence, in this case, it is concluded that the correct answer is option B. "American tourists traveling in France."
Group of answer choices.
A. German tourists traveling abroad.
B. American tourists traveling in France.
C. Canadian firms selling in Germany.
D. Canadian investors with money investments in Germany.
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