Which of These Is NOT a Determinant of Exchange Rates

question 173

Multiple Choice

Which of these is NOT a determinant of exchange rates?

• A) foreign tastes and preferences for U.S. goods and services
• B) foreign confidence in U.S financial markets
• C) foreign demand for U.S. gold
• D) foreign expectations of future exchange rates

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Definitions:

Progressive Income Tax

A tax system in which the tax rate increases as the taxable income increases, imposing higher rates on those with higher incomes.

Taxation

The process by which a government levy charges on citizens or corporate entities to finance government spending and activities.

Sales And Excise Taxes

Taxes placed on the sale or manufacture of goods and services, collected by the government.

Products

Goods or services that are created through a process and offered in the market to satisfy customer needs or desires.