The ________ Approach Argues That Equilibrium Exchange Rates Are Achieved

question 38

Multiple Choice

The ________ approach argues that equilibrium exchange rates are achieved when the net inflow of foreign exchange arising from current account activities is equal to the net outflow of foreign exchange arising from financial account activities.

• A) balance of payments
• B) monetary
• C) asset market
• D) law of one price

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Definitions:

Slave Revolt

An armed uprising by slaves against their masters and the institution of slavery, often seeking freedom, such as the famous 1831 rebellion led by Nat Turner in Virginia.

Virginia

A state in the southeastern U.S., known for its significant history as the site of the first permanent English settlement in America at Jamestown and later as a key battleground in the Civil War.

Presidential Election

The process by which the president of the United States is elected, typically held every four years, where citizens vote for electors who then vote for the president.

Haitian Refugees

Individuals fleeing Haiti due to political instability, natural disasters, or economic hardship, often seeking asylum in other countries.