It Has Been Argued That the Exchange Rate Can Be

question 28

Multiple Choice

It has been argued that the exchange rate can be used as a policy tool. Assume that the UK government would like to reduce unemployment. Which of the following is an appropriate action given this scenario?

• A) Weaken the pound
• B) Strengthen the pound
• C) Buy pounds with foreign currency in the foreign exchange market
• D) Implement a tight monetary policy

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Definitions:

Graduated Commission

A commission structure where the rate of commission increases with the amount of sales or other measurable achievements.

Sales Totalling

The process of adding up all sales transactions within a given period to determine a total revenue amount.

Pretax

Financial figures or earnings calculated before taxes are deducted.

Distribution

The process of allocating or dispersing goods, resources, or payments to various parties.