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:

Action Analysis

The process of examining and breaking down the actions required to achieve a particular goal or objective.

Situational Analysis

The process of identifying internal and external factors that can affect an organization's performance, often as a part of strategic planning.

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A centralized repository of integrated data from one or more disparate sources, used for reporting and data analysis.

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A central storage location for large volumes of data, often used for processing, analyzing, and accessing big data sets.