The Federal Reserve decreases the money supply in the United States causing interest rates to increase. Draw correctly labeled graphs to show how the increased interest rates in the scenario will affect the demand for the U. S. dollar and supply of the EU euro in the foreign exchange market. Based on the scenario, what will happen to the value of the EU euro

Following are the solution to the given question:

Explanation:

Please find the graph file in the attachment.

Unless the amount of money drops, the tax rate will increase. This will impact the euro currency supplies and US dollar market, that's a supply of European union would motivate people who hold to see what's happening in Europe. It will move towards the right when it sells the euro and competition for international goods and services would rise. Throughout this scenario, US dollars will be requested through persons keeping currency apart from US dollars. They will be motivated by others.

Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan