Under a System of Floating Exchange Rates, Relatively High Productivity

question 75

Multiple Choice

Under a system of floating exchange rates, relatively high productivity and low inflation rates in the United States result in

• A) an increase in the demand for foreign currency, a decrease in the supply of foreign currency, and a depreciation in the dollar.
• B) an increase in the demand for foreign currency, an increase in the supply of foreign currency, and an appreciation in the dollar.
• C) a decrease in the demand for foreign currency, a decrease in the supply of foreign currency, and a depreciation in the dollar.
• D) a decrease in the demand for foreign currency, an increase in the supply of foreign currency, and an appreciation in the dollar.

---

Definitions:

Involuntary Petition

A legal process initiated by creditors requesting a court to declare a debtor bankrupt when the debtor hasn't voluntarily filed for bankruptcy.

Order for Relief

A court order in bankruptcy proceedings that grants the petitioner, usually a debtor, protection from creditors and sanctions the commencement of bankruptcy proceedings.

Fraudulent Transfer

The act of illegally transferring property to another party in order to evade creditors or the law.

Trustee

A trustee is an individual or organization that holds or manages property or assets for the benefit of another, usually under the terms of a trust agreement.