Which of the Following Statements Regarding Local-Preference Is True

question 575

Multiple Choice

Which of the following statements regarding Local-Preference is true?

• A) Local-Preference is a well-known mandatory attribute.
• B) Local-Preference affects traffic that enters an AS.
• C) Local-Preference can be transmitted between ASs.
• D) The default Local-Preference value is 100.

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Definitions:

Freely Floating Exchange Rate

A currency system where the value of a country's currency is allowed to fluctuate according to the foreign exchange market.

Current Account Deficit

A situation where a country's total imports of goods, services, and transfers are greater than its total exports, indicating that it is spending more foreign currency than it is earning.

Merchandise Trade Deficit

A situation where a country's imports of goods exceed its exports of goods over a given period, leading to a negative balance of trade.

Service Trade Deficit

The situation where the value of a country's imports of services exceeds the value of its exports of services.