Short-Run Movements in Nominal Exchange Rates Are Primarily Due To

question 84

Multiple Choice

Short-run movements in nominal exchange rates are primarily due to:

• A) changing prices of goods and services in the countries involved.
• B) changing expected rates of return on domestic and foreign assets.
• C) inflation differentials.
• D) changes in exports.

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Definitions:

Arbitration

A method of dispute resolution where a neutral third party renders a decision, which is usually binding.

Mediation

A form of alternative dispute resolution where a neutral third party helps conflicting parties to reach a mutually satisfactory agreement.

Conciliation

A method of alternative dispute resolution where a conciliator helps parties in a dispute to reach a mutually satisfactory agreement to resolve their issues.

Negotiation

The process by which two or more parties communicate and come to an agreement or resolve a dispute.