The Main Reason(s) Why Governments Sometimes Choose to Devalue Their

question 58

Multiple Choice

The main reason(s) why governments sometimes choose to devalue their currencies is (are)

• A) devaluation makes domestic goods more expensive in relation to foreign goods.
• B) devaluation makes domestic services more expensive in relation to foreign services.
• C) devaluation increases foreign reserves held by the central bank.
• D) devaluation improves the current account and increases foreign reserves held by the central bank.
• E) devaluation hurts foreign currencies.

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Definitions:

Molecular Ion Peak

The peak in a mass spectrum that corresponds to the mass of the intact molecule, often used for molecular weight determination.

Boron Isotopes

Variants of the element boron, differing in the number of neutrons in the nucleus and having distinct nuclear properties.

Trimethylborate

A chemical compound with the formula B(OCH3)3, used as a reagent in organic synthesis and as a flame retardant.

M+2 Peak

A peak in mass spectrometry representing molecules with two more units of mass than the base molecular ion, often due to the presence of isotopes such as sulfur-34 or chlorine-37.