Question

Rahul​ Reddy, an Indian real estate​ entrepreneur, believes that​ "The United States is good for speculative​ higher-risk investment." He profited from earlier investment in Australia and a strong Australian dollar provided him with the funds to enter the U.S. real estate market at prices that he believed​ "we will probably not see for a long​ time." He​ said, "The United States is an economic powerhouse that I think will​ recover, and if the exchange rate goes back to what it was a few years​ ago, we will​ benefit."

Read the news​ clip, then answer the following question.
Mr. Reddy is investing in the U.S. real estate market because​ ______.
A.the supply of U.S. dollars and the demand for U.S. dollars both increased
B.the U.S. dollar depreciated and the price of U.S. investment properties to foreign investors like Mr. Reddy decreased
C.the U.S. dollar appreciated and the price of U.S. investment properties to foreign investors like Mr. Reddy decreased
D.the supply of U.S. dollars and the demand for U.S. dollars both decreased

Answer 1

Mr. Reddy is investing in the U.S. real estate market because the U.S. dollar has depreciated, making investment properties cheaper for him, and potential currency appreciation in the future may boost returns when converting profits to his home currency.

Step-by-step explanation:

Mr. Rahul Reddy is investing in the U.S. real estate market because the U.S. dollar depreciated and the price of U.S. investment properties to foreign investors like Mr. Reddy decreased. When the U.S. dollar is weaker, foreign investors can buy more with their home currency, making investments in the U.S. more attractive. Moreover, if the dollar appreciates in the future, Mr. Reddy will benefit from a higher exchange rate when converting any profits back into his home currency, enhancing his returns.