Under a Pure Flexible Exchange Rate System, the Rate That

question 10

Multiple Choice

Under a pure flexible exchange rate system, the rate that equates demand and supply in the exchange rate market will also lead to a balance of

• A) merchandise exports and merchandise imports.
• B) current account transactions.
• C) capital account transactions.
• D) current and capital account transactions.

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Definitions:

Meteor Impact

The collision of a meteoroid with the Earth or another planet, causing effects ranging from craters to climate changes depending on the size and speed of the meteoroid.

Extinction

The process through which a species ceases to exist due to the death of its last remaining members.

Dinosaurs

A diverse group of prehistoric reptiles that lived during the Mesozoic Era, now extinct.

Mass Extinctions

Events in Earth's history where large numbers of species become extinct in a relatively short period of time.