If a Country's International Reserves Are Decreasing, Then Its Exchange

question 91

Multiple Choice

If a country's international reserves are decreasing, then its exchange rate is ________ and there is a balance-of-payments ________.

• A)undervalued; surplus
• B)undervalued; deficit
• C)overvalued; deficit
• D)overvalued; surplus

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Definitions:

Payroll Tax

Dues collected from employees or employers, calculated by taking a fraction of the pay employers give to their workers.

Taxable Income

The amount of income that is subject to income tax after all deductions, exemptions, and adjustments have been accounted for.

Deductions And Exemptions

Specific amounts that taxpayers can subtract from their gross income to reduce taxable income, potentially lowering their tax liability.

Federal Income Taxes

Taxes levied by the U.S. federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.