Under a System of Floating Exchange Rates,a U

question 168

Multiple Choice

Under a system of floating exchange rates,a U.S.trade deficit with Japan will cause:

• A) A flow of gold from the United States to Japan
• B) The U.S.government to ration yen to U.S.importers
• C) An increase in the dollar price of yen
• D) A decrease in the dollar price of yen

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Definitions:

Transfer Warranty

Guarantees made by the seller regarding the ownership and quality of property being sold, assuring it is free of claims or liens.

Consideration

Something of value exchanged between parties in a contract, which can include money, services, or goods, making the contract legally binding.

Indorsement

A signature or stamp placed on a negotiable instrument (such as a check) that indicates the future control or ownership of the instrument.

Secondary Liability

Secondary liability occurs when a party is held responsible for the actions of another, typically in situations where the primary party fails to fulfill their obligations.