In the Context of Foreign Exchange Rates, When the Country

question 30

Multiple Choice

In the context of foreign exchange rates, when the country of Zansia fixes its currency Zan to the U.S dollar at 5.5 Zan per dollar, it can be said that:

• A) Zansia spreads its currency, Zan, to the U.S dollar at 5.5 Zan per dollar.
• B) Zansia pegs its currency, Zan, to the U.S dollar at 5.5 Zan per dollar.
• C) Zansia forecasts its currency, Zan, to the U.S dollar at 5.5 Zan per dollar.
• D) Zansia exchanges its currency, Zan, with the U.S dollar at 5.5 Zan per dollar.

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Definitions:

Imperfectly Competitive

A market structure where individual producers have some control over the price and supply of products, as opposed to perfect competition where no single producer can influence the market.

Market Price

The prevailing rate at which a commodity or service is available for purchase or sale in a specific market.

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a given price over a specific time period.

Number of Sellers

Refers to the total quantity of providers or suppliers offering a particular good or service in a market.