A lower value of the US dollar means that
A. a dollar would be traded for less foreign currency than normal.
B. the American dollar is worth more when purchasing a foreign-made good.
C. the American dollar isn't backed by gold.
D. the dollar can't be used in international trade.
Is B right answer ?
No
From Google:
DEFINITION of Weak Dollar. A weak dollar is a situation where the U.S. dollar's value is decreasing relative to one or a basket of foreign currencies. Essentially, a weak dollar means that a U.S. dollar can exchange for fewer amounts of foreign currency.
Yes, option B is the correct answer. A lower value of the US dollar means that the American dollar is worth more when purchasing a foreign-made good.
To arrive at this answer, we can look at the definition of a lower value of the US dollar. When the value of the US dollar decreases, it means that it has weakened in comparison to other currencies. As a result, you would need more US dollars to exchange for a certain amount of foreign currency.
In practical terms, this means that if the US dollar has a lower value, you would need more US dollars to purchase the same amount of a foreign-made good. For example, if a TV costs €500 and the exchange rate is $1 = €0.85, you would need $588.24 to purchase that TV. However, if the value of the US dollar decreases, let's say the exchange rate becomes $1 = €0.80, then the TV would now cost $625, making the US dollar more valuable when purchasing the foreign-made good.
So, option B accurately describes the effect of a lower value of the US dollar.