Under the Current Managed Float Exchange Rate Regime,countries with ________

question 109

Multiple Choice

Under the current managed float exchange rate regime,countries with ________ in their balance of payments frequently do not want to see their currencies ________ because it makes their goods more expensive abroad and foreign goods cheaper in their countries.

• A)surpluses;depreciate
• B)deficits;depreciate
• C)surpluses;appreciate
• D)deficits;appreciate

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Definitions:

Tariff

A tax imposed by a government on imported goods, often used to protect domestic industries and regulate trade balances.

Legal Limit

The maximum or minimum boundary set by law, such as for speed on roads, alcohol consumption, or transaction amounts.

Foreign-Produced Shoes

Shoes that are manufactured outside of one's home country.

Tariff

A tax imposed on imported goods, usually to protect domestic industries or to generate revenue.