Which One of the Following Statements Is TRUE

question 2

Multiple Choice

Which one of the following statements is TRUE?

• A) The less extensive are cross-border trade and factor movements, the greater is the gain from a fixed cross-border exchange rate.
• B) The more extensive are cross-border trade and factor movements, the greater is the loss from a fixed cross-border exchange rate.
• C) The more extensive are cross-border trade and factor movements, the greater is the gain from a fixed cross-border exchange rate.
• D) The more extensive are cross-border trade, the greater is the loss from a fixed cross-border exchange rate.
• E) The more extensive are factor movements, the greater is the loss from a fixed cross-border exchange rate.

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Definitions:

Lowest Terms

The expression of a fraction in its simplest form, where the numerator and denominator are as small as possible.

Ratio

A mathematical way to compare two quantities, indicating how many times one value contains or is contained within the other.

Lowest Terms

The simplest form of a fraction, where the numerator and denominator are reduced to their smallest possible values.

Ratio

A mathematical expression that compares two numbers by division, indicating how much of one value there is compared to another.