Under a Floating Exchange Rate System, Other Things Equal, If

question 53

Multiple Choice

Under a floating exchange rate system, other things equal, if there occurs a fall in the dollar price of the Swiss franc

• A) American exports to Switzerland will be cheaper in francs.
• B) American exports to Switzerland will be more expensive in francs.
• C) American imports from Switzerland will be more expensive in dollars.
• D) None of the above.

---

Definitions:

Frequency

The number of occurrences of a repeating event per unit of time.

Exposed

Being in a state of vulnerability or subject to potential harm, physically, emotionally, or socially.

Overarching Issues

Broad, general problems or concerns that encompass or underlie specific instances or details.

Behavior

The actions or reactions of an object or organism, usually in relation to the environment.