If, Other Things Equal, a Country with a Flexible Exchange

question 17

Multiple Choice

If, other things equal, a country with a flexible exchange rate decreases its money supply, this will lead to __________ in the value of the country's currency, which will tend to __________ the country's national income.

• A) a depreciation; increase
• B) a depreciation; decrease.
• C) an appreciation; increase
• D) an appreciation; decrease

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Definitions:

Safeguard Assets

Implemented measures and policies to protect a company’s assets from theft, damage, or misuse.

Internal Controls

A set of procedures and policies designed to ensure the accuracy and completeness of financial reporting, safeguard assets, and ensure compliance with laws and regulations.

Sarbanes Oxley Act

A U.S. law enacted in 2002 to protect investors by improving the accuracy and reliability of corporate disclosures.

Internal Controls

Processes and procedures designed to ensure the integrity of financial and accounting information, promote accountability and prevent fraud.