Assume Exchange Rates Are Flexible

question 145

Multiple Choice

Assume exchange rates are flexible.Net capital inflows tend to

• A)appreciate the currency of the capital-importing nation.
• B)appreciate the currency of the capital-exporting nation.
• C)increase the supply of the capital-importing country's currency in the foreign-exchange market.
• D)increase the demand for the capital-exporting country's currency in the foreign-exchange market.
• E)decrease the official reserves of the capital-importing country.

---

Definitions:

Large Batch Sizes

The production process strategy that involves manufacturing goods in large quantities to achieve economies of scale but may increase inventory holding costs.

Lead Time

Lead time refers to the period between the initiation and completion of a process, such as the time taken from placing an order to delivery or the duration of manufacturing a product.

Reducing Wait Time

Strategies and measures implemented to decrease the amount of time customers or users wait for service or product delivery.

Reducing Inventory

The process of decreasing the amount of goods on hand, often to improve cash flow or reduce storage costs.