The dollar is becoming weaker and weaker. What effects will it have? Look at the recordhigh price of oil. Even if the same amount of oil is being pumped out of the ground,since it is traded in dollars and the dollar has weakened,the price of oil has increased to make up for the lost value of the dollar,creating a sort of vicious cycle . Oilproducing countries don't want to keep all the dollars they are getting for their oil,since it's declining in value,so they exchange their dollars for euros or other currencies. That pushes more dollars back out into currency markets,which in turn pushes down the dollar's value. One expert told ABC News that Russia used to have 90 percent of its financial reserves in dollars. It now has 45 percent in dollars,45 percent in euros and 10 percent in British pounds. In the US itself,the news is mixed. It's good,because it makes what we produce here cheaper to sell in foreign markets,and that in turn spurs  exports of our products around the world. That translates into more manufacturing and more jobs. But a weak dollar is bad,because it leads to inflation   in this country. Imports from foreign countries will become more expensive,and in particular,oil will be more expensive. That puts pressure on businesses to increase prices for anything that uses oil or products that come from overseas. One benefit for American shoppers is that China has largely pegged its currency to ours,so that keeps the price of Chinesemade goods low and therefore,keeps a check on inflation. Which of the following would be the best title for this passage?
Why is the dollar losing value? What caused the weak dollar? What to do with the weak dollar? What effects will the weak dollar have?
Question: The dollar is becoming weaker and weaker. What effects will it have? Look at the recordhigh price of oil. Even if the same amount of oil is being pumped out of the ground,since it is traded in dollars and the dollar has weakened,the price of oil has increased to make up for the lost value of the dollar,creating a sort of vicious cycle . Oilproducing countries don't want to keep all the dollars they are getting for their oil,since it's declining in value,so they exchange their dollars for euros or other currencies. That pushes more dollars back out into currency markets,which in turn pushes down the dollar's value. One expert told ABC News that Russia used to have 90 percent of its financial reserves in dollars. It now has 45 percent in dollars,45 percent in euros and 10 percent in British pounds. In the US itself,the news is mixed. It's good,because it makes what we produce here cheaper to sell in foreign markets,and that in turn spurs  exports of our products around the world. That translates into more manufacturing and more jobs. But a weak dollar is bad,because it leads to inflation   in this country. Imports from foreign countries will become more expensive,and in particular,oil will be more expensive. That puts pressure on businesses to increase prices for anything that uses oil or products that come from overseas. One benefit for American shoppers is that China has largely pegged its currency to ours,so that keeps the price of Chinesemade goods low and therefore,keeps a check on inflation. Which of the following would be the best title for this passage?
A. Why is the dollar losing value?
B. What caused the weak dollar?
C. What to do with the weak dollar?
D. What effects will the weak dollar have?
Answer: