If the EU Imposes a Quota on the Importing of Clothing

question 42

Multiple Choice

If the EU imposes a quota on the importing of clothing produced in China, so reducing UK imports of clothing, which of the following is true regarding the market for foreign currency exchange?

• A) The demand for pounds decreases and the pound depreciates.
• B) The supply of pounds increases and the pound depreciates.
• C) The supply of pounds decreases and the pound appreciates.
• D) The demand for pounds increases and the pound appreciates.

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Definitions:

Vulnerability

A state of being open to harm, damage, or emotional hurt, often as a result of external factors or conditions.

Authoritarian Parenting

A parenting style characterized by strict rules and expectations, with little negotiation possible from the child’s side.

Social Competence

The ability to interact successfully with others, including forming relationships and navigating social contexts.