A Country Running a Balance of Payments Surplus in a Fixed

question 154

Multiple Choice

A country running a balance of payments surplus in a fixed exchange rate system may have to ____ its currency.

• A)depreciate
• B)devalue
• C)revalue
• D)appreciate

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Definitions:

Nation's Currency

The system of money in general use in a particular country, representing the medium of exchange and basis for trade.

Unsold Goods

Items that have been produced or acquired for sale but have not been purchased by consumers, often leading to excess inventory for businesses.

Republicanism

A political ideology centered on citizenship in a state organized as a republic, emphasizing liberty, and the rule of law as opposed to hereditary monarchy.

Virtue

is a trait or quality deemed to be morally good and thus is valued as a foundation of good moral being. Personal virtues include traits such as integrity, courage, fortitude, honesty, and loyalty.