Under the Current Managed Float Exchange Rate Regime,countries with Balance

question 34

Multiple Choice

Under the current managed float exchange rate regime,countries with balance of payments ________ frequently do not want to see their currencies ________ because it makes foreign goods more expensive for domestic consumers and can stimulate inflation.

• A)surpluses;depreciate
• B)deficits;depreciate
• C)surpluses;appreciate
• D)deficits;appreciate

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Definitions:

Wholesale Price

The cost at which goods are sold to retailers by manufacturers or distributors before any retail markup.

Retail Price

The cost at which an item is sold to the general public by retailers.

Mark-up on Cost

The percent increase applied to the goods' cost price to cover overhead expenses and profit.

London Drugs

A Canadian retail store chain specializing in pharmaceuticals, electronics, cosmetics, and a range of household goods.