When Faced with a Continual Excess Demand for Foreign Exchange

question 26

Multiple Choice

When faced with a continual excess demand for foreign exchange, which of the following options can the government choose to eliminate the disequilibrium situation?

• A)increase the peg or devalue
• B)engage in fiscal policy and raise the country's income level
• C)engage in monetary policy and lower interest rates
• D)increase the inflation rate
• E)decrease the peg or revalue

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Definitions:

Genetic Material

The molecules (mainly DNA or RNA) within cells that carry the genetic instructions for the development, functioning, growth, and reproduction of all known organisms.

Zygote

The initial cell formed when a sperm cell fertilizes an egg cell, containing the genetic information necessary for the development of a new organism.

Chromosomes

Structures located in the nucleus of cells, made up of DNA and protein, that contain genes, the basic units of heredity.

Pairs

Groupings of two related or associated items, often used to study comparisons or contrasts.