Suppose That at the Fixed Exchange Rate Implied by the Gold

question 159

Multiple Choice

Suppose that at the fixed exchange rate implied by the gold standard, the quantity demanded of Chahidi's currency exceeded the quantity supplied. This implies that

• A) Chahidi has a surplus in its balance of payments.
• B) Chahidi has a deficit in its balance of payments.
• C) Chahidi has a deficit in its capital account.
• D) The exchange rate will fall to restore equilibrium.

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Definitions:

Inter-Departmental

Pertains to activities, communication, or cooperation between different departments within an organization.

Minimum Intergroup Conflict

A state where there is negligible or the lowest amount of conflict between different groups within an organization or society.

Multicultural Organization

An organization that incorporates and respects a variety of cultural perspectives, practices, and contributions in its operations and strategies.

Culture-Group Biases

The tendency to interpret and judge peoples' behaviors, cultures, or ideas from one's own cultural perspective, leading to bias.