An Increase in Which of the Following Factors (From the Perspective

question 56

Multiple Choice

An increase in which of the following factors (from the perspective of the domestic country) would cause a depreciation of the domestic currency in the long run?

• A) domestic interest rate
• B) relative price level
• C) relative export demand
• D) all of the above

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Definitions:

Drawee

The party that must obey an order. In the context of banking, the drawee is the bank that must pay the funds ordered by a customer’s check.

Regulation E

A provision of the Electronic Fund Transfer Act that outlines rules for electronic payments, including transfers via ATM, debit card, and other direct transfers.

Federal Reserve

The central banking system of the United States that aims to provide the nation with a safer, more flexible, and more stable monetary and financial system.

E-money Transactions

Financial transactions carried out electronically, using digital currencies or electronic substitutes for cash.