When a Country Experiences a Balance of Payments Surplus in a Fixed

question 19

Multiple Choice

When a country experiences a balance of payments surplus in a fixed exchange rate system, it usually _______ the currency to reduce exports.

• A) tries to hold constant the value of
• B) abandons
• C) allows the revaluation of
• D) allows the devaluation of

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Definitions:

Voidable Policy

A contract or insurance policy that can be declared invalid by one of the participating parties due to certain conditions not being met or misrepresented.

Station in Life

A term referring to one's social position or status, often considered in legal contexts to assess appropriateness of actions or compensation.

Necessary for Minor

Refers to goods or services deemed essential for the wellbeing and development of a minor, which they can contract for.

Court Consideration

The factors or evidence that a court takes into account when making a decision on a case.