Under a Fixed Exchange Rate System,countries That Ran Large,persistent Balance

question 40

Multiple Choice

Under a fixed exchange rate system,countries that ran large,persistent balance of payments deficits would ________ international reserves,thereby pressuring them into ________ their exchange rate.

• A) gain; devaluing
• B) gain; revaluing
• C) lose; devaluing
• D) lose; revaluing

---

Definitions:

Executive Compensation

The package of pay and benefits awarded to senior executives, including salaries, bonuses, stock options, and other perks.

Firm Performance

Measures how well a company achieves its business objectives and financial goals.

Political Connections

Relationships or affiliations between organizations or individuals and political figures or institutions, which may influence the organization's outcomes.

Firm Size

A measure of a company's scale or magnitude, often assessed by metrics such as number of employees, total sales, or market share.