Which State Is Most Likely to Face a Currency Crisis

question 84

Multiple Choice

Which state is most likely to face a currency crisis?

• A)A state that imports more than it exports.
• B)A country that devalues its currency often in response to inflation.
• C)A country that maintains a fixed exchange rate in relation to gold.
• D)A country that has a floating exchange rate.
• E)A country that has a modest amount of debt.

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Definitions:

EBT Cards

Electronic Benefit Transfer cards used by state welfare departments to issue benefits, such as food stamps and cash assistance, electronically.

Income Redistribution

The transfer of income and wealth from certain individuals or groups to others through mechanisms such as taxes and social security.

Social Security System

A government program that provides financial assistance to people with insufficient or no income, mainly targeting the elderly, disabled, and the unemployed.

Medicare and Medicaid

Government programs in the United States that provide healthcare coverage to eligible elderly, disabled individuals, and low-income people, respectively.