Claire and Matt Are Involved in a Romantic Relationship

question 134

Multiple Choice

Claire and Matt are involved in a romantic relationship. Matt has recently given Claire a gold bracelet. Because there was no special occasion, Claire now feels the need to reciprocate the gift. The __________ theory of relationships is most applicable in this case.

• A) social exchange
• B) equity
• C) equality
• D) triangular

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Definitions:

Cross-Rate

The implicit exchange rate between two currencies (usually non-U.S.) quoted in some third currency (usually the U.S. dollar).

Exchange Rate

The worth of a certain currency depicted through the value of a different currency.

Foreign Currency Approach

A method in international finance that involves analyzing business or investment decisions based on their impact in foreign currency terms.

Inflation Rate

The increase in the average price levels of goods and services, resulting in reduced purchasing capacity.