If the Exchange Rate Is Too High in the Foreign

question 37

Multiple Choice

If the exchange rate is too high in the foreign exchange market,

• A)there is a surplus and the exchange rate will rise.
• B)there is a surplus and the exchange rate will fall.
• C)exports are cheap, and the demand curve for Canadian dollars will shift rightward.
• D)there is a shortage and the exchange rate will fall.
• E)there is a shortage and the exchange rate will rise.

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Definitions:

Premium Approach

A marketing strategy that emphasizes the high quality and exclusiveness of a product, targeting consumers willing to pay more.

Introductory Approach

The most common but least powerful approach; it does little to capture the prospect’s attention.

Complimentary Approach

An approach that opens with a compliment that is sincere and therefore effective.

Straight Rebuy Situations

Situations in business purchasing where the buyer reorders an existing product or service without modifications, often through automated systems, reflecting a routine purchasing decision.