Under a System of Floating Exchange Rates,the Swiss Franc Would

question 82

Multiple Choice

Under a system of floating exchange rates,the Swiss franc would depreciate in value if which of the following occurs?

• A) Price inflation in France
• B) An increase in U.S.real income
• C) A decrease in the Swiss money supply
• D) Falling interest rates in Switzerland

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Definitions:

Canada

A country in North America known for its vast landscapes, multicultural communities, and as a member of the Commonwealth.

Federal Government Budget Deficit

The financial situation that occurs when a government's expenditures exceed its revenues in a fiscal year.

Interest Rates

The charges levied by lenders on borrowers for the privilege of using the lender's money, expressed as a proportion of the borrowed amount per unit of time.

U.S. Dollar

The official currency of the United States, which serves as a major reserve currency and is used in many international transactions.