Which of the Following Types of International Capital Flows Can

question 4

Multiple Choice

Which of the following types of international capital flows can affect a currency's exchange rate:

• A)investment capital flows only.
• B)political capital flows only and central banks' foreign exchange market operations.
• C)investment and political capital flows.
• D)investment capital flows,political capital flows and central banks' foreign exchange market operations.

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Definitions:

Biological Drives

Innate impulses in living organisms that contribute to their survival, such as hunger, thirst, and the instinct for reproduction.

Contact Comfort

The psychological and emotional comfort that an infant derives from being in physical contact with its caregiver, suggesting the importance of touch in social and emotional development.

Signs of Distress

Indicators or symptoms showing that an individual is experiencing emotional or physical discomfort.

Separation

The process of distinguishing oneself from others or from previous conditions, often used in psychological contexts to describe individualization.