With Flexible Exchange Rates

question 24

Multiple Choice

With flexible exchange rates

• A)The equilibrium exchange rate is determined in a foreign exchange market.
• B)The balance of trade is zero.
• C)Foreign exchange reserves are used to offset balance-of-payment deficits.
• D)All countries will run either a trade surplus or trade deficit.

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Definitions:

Trend Statements

Rephrased: Financial reports highlighting the development and direction of financial indicators over several periods, facilitating the identification of patterns and trends.

Financial Statement Line Item

A financial statement line item refers to any single entry that appears in the financial statements, representing financial numbers or details.

Trend Statements

Financial reports or analyses that track the progress, direction, or movements of specific metrics or indicators over periods.

Stability

The degree to which an economy, market, or financial asset experiences minimal fluctuations and maintains a consistent performance over time.