Given Floating Exchange Rates, Assume That the Swiss Decrease Their

question 58

Multiple Choice

Given floating exchange rates, assume that the Swiss decrease their import purchases from Italy while the Italians increase their purchases of Swiss government securities.The first action by itself would lead to a(n) ____ of the franc against the lira while the second action by itself would lead to a(n) ____ of the franc against the lira.

• A) appreciation, appreciation
• B) depreciation, depreciation
• C) appreciation, depreciation
• D) depreciation, appreciation

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Definitions:

Estrogen

A group of steroid hormones that play an important role in the development and maintenance of female sexual characteristics and reproductive functions.

Cowper's Glands

Small glands located on either side of the urethra in males that secrete a pre-ejaculate fluid contributing to lubrication and neutralizing acidity in the urethra.

Mucus

A slippery secretion produced by mucous membranes, serving to moisten and protect them.

Ejaculation

The process of releasing semen from the penis during sexual arousal or orgasm.