Under the Existing System of Partially-Flexible Exchange Rates, a Country

question 29

Multiple Choice

Under the existing system of partially-flexible exchange rates, a country experiencing what it believes is a long-term balance of payments deficit might be expected to:

• A)sell its own currency in the foreign exchange market.
• B)buy its own currency in the foreign exchange market.
• C)let its currency lose value.
• D)let its currency gain value.

---

Definitions:

Business Ethics

Principles and moral values that guide the behavior and decision-making process of individuals and organizations in the business environment.

Regular Ethics

The study and application of moral principles and standards that guide everyday professional and personal conduct.

Shareholder

An individual or entity that owns at least one share of a company's stock, making them a partial owner of the company.

Stakeholder

An individual or entity with an interest or concern in a business or project, potentially affected by its outcomes.