When a Country Has an Independently Floating Currency and Its

question 9

Multiple Choice

When a country has an independently floating currency and its overall balance of payments shows a major deficit, which of the following is occurring:

• A) National currency demand exceeds supply and the currency should depreciate
• B) National currency supply exceeds demand and the currency should depreciate
• C) National currency demand exceeds supply and the currency should appreciate
• D) National currency supply exceeds demand and the currency should appreciate

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Definitions:

OCD

Obsessive-Compulsive Disorder, a mental health condition characterized by intrusive thoughts (obsessions) and repetitive behaviors (compulsions).

Persistent Doubting

A cognitive pattern where an individual continuously questions the validity of their thoughts, actions, or decisions, often seen in disorders such as OCD.

Memory Deficits

Memory deficits refer to impairments in the ability to remember information or events, which can be temporary or permanent, and can result from various causes including brain injury, illness, or psychological conditions.

Obsessional Themes

Recurrent and persistent thoughts, impulses, or images experienced as intrusive and unwanted, often causing significant anxiety or distress, characteristic of disorders like obsessive-compulsive disorder.