Under a System of Floating Exchange Rates, an Excess Demand

question 129

Multiple Choice

Under a system of floating exchange rates, an excess demand for a particular currency will lead to a(n)

• A) depreciation of that currency.
• B) long-term shortage of that currency.
• C) appreciation of that currency.
• D) long-term surplus of that currency.

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Definitions:

Reward Systems

Are mechanisms set up by organizations to compensate, recognize, and motivate their employees.

Customer Feedback

Customer feedback refers to the information, insights, opinions, and reactions that a business receives from its customers regarding their experience with the company's products or services.

Increased Communication

Increased communication refers to enhancing the exchange of information in frequency and clarity among individuals or groups.

Resistance

The act of rejecting or not agreeing with something; trying to stop something through actions or reasoning.