Water Shortages May Be Caused by All of the Following

question 7

Multiple Choice

Water shortages may be caused by all of the following EXCEPT:

• A) drought.
• B) flood.
• C) pollution.
• D) overuse of water.
• E) All of these are contributors to water shortages.

---

Definitions:

Reserves

Reserves are funds or materials set aside or saved for future use or to cover unexpected emergencies, often used in financial, resource, or energy sectors.

Equilibrium Exchange Rate

The exchange rate at which the demand for a currency is exactly equal to its supply in the foreign exchange market.

Purchasing Power Parity Theory

An economic theory that compares different countries' currencies through a "basket of goods" approach to determine relative currency values.

Exchange Rates

The value of one currency expressed in terms of another currency, used in international trade and investment.