The ________ Approach to the Determination of Spot Exchange Rates

question 56

Multiple Choice

The ________ approach to the determination of spot exchange rates hypothesizes that the most important factors are the relative real interest rate and a country's outlook for economic growth and profitability.

• A) balance of payments
• B) parity conditions
• C) managed float
• D) asset market

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Definitions:

Short-swing Profits Rule

A regulation intended to prevent insider trading by requiring company insiders to return any profits made from the purchase and sale of company stock within a six-month period.

1934 Act

The Securities Exchange Act of 1934, which governs the trading of securities in the U.S., establishes the Securities and Exchange Commission (SEC), and mandates reporting by publicly traded companies.

Short-swing Profits Rule

A regulation intended to prevent insiders of a company from taking advantage of non-public information for quick financial gains by buying and selling their own company's stock within a six-month period.

Civil Liability

Legal responsibility for actions or omissions that cause harm or injury to another individual, subject to financial compensation rather than criminal penalties.