Answer:
Increase demand for euros and Increase US dollar price of the Euro
Explanation:
The U.S travelers to Europe will require euros while in Europe. However, since the supply of euros is static i.e does not change with change in demand, there will be more people demanding for the euro resulting into increased demand for the euro. As a result, people will have to pay more US dollars to obtain euros thus increasing the US dollar price of the euro.
The <u>Current Ratio</u> ("<u>Banker's Ratio</u>) measures a firm's ability to generate cash to meet current obligations by selling inventory and collecting revenue.
<h3>What is bankers ratio?</h3>
A company's debt-to-equity ratio reveals how much debt it has for every dollar of shareholder equity. This ratio was developed by bankers. If you are eligible for a loan, a bank will assess your debt-to-equity ratio in comparison to others in your sector. Your risk is high if this ratio is high.
<h3>Why do bankers use ratio analysis?</h3>
The majority of ratios may be computed using financial statements, and they are used to compare a company's financial performance to that of its competitors and to identify trends in those performances. Businesses should compute these ratios on their own to discover areas for improvement before approaching a credit institution.
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