Balance of Payments Crises Under Fixed Exchange Rates Occur Because

question 49

Multiple Choice

Balance of payments crises under fixed exchange rates occur because of

• A) government policies that are inconsistent with fixed exchange rates.
• B) punitive currency wars.
• C) global inflation and trade imbalances due to war.
• D) excessive exports and imports that overload the global system.
• E) monotonic expansion in global currency volume.

---

Definitions:

Endocrine Glands

are ductless glands that release hormones directly into the bloodstream, regulating various body functions.

Pancreas

A glandular organ in the digestive and endocrine system of vertebrates producing digestive enzymes and hormones such as insulin.

Posterior Lobe

The back part of an organ or structure, such as the rear portion of the pituitary gland in the human brain.

Pituitary Gland

A small, pea-sized gland located at the base of the brain, often termed the "master gland," it regulates various hormonal activities in the body.