If Speculators Believe a Currency Is Undervalued,their Trades in International

question 144

Multiple Choice

If speculators believe a currency is undervalued,their trades in international exchange markets will

• A)increase the surplus of the currency at the existing fixed exchange rate.
• B)decrease the surplus of the currency at the existing fixed exchange rate.
• C)decrease the shortage of the currency at the existing fixed exchange rate.
• D)increase the shortage of the currency at the existing fixed exchange rate.

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Definitions:

Playful

Characterized by light-heartedness or amusement; engaging in activities for enjoyment and recreation rather than a serious or practical purpose.

Autonomic Nervous System

The part of the nervous system responsible for controlling involuntary bodily functions, such as heartbeat, digestion, and breathing.

Vulnerability

The susceptibility to be wounded or harmed, either physically, emotionally, or socially.

Prolonged Stress

Chronic stress experienced over an extended period, which can lead to significant health issues, including mental health disorders and cardiovascular diseases.