A "Fragile State" Is One That

question 22

Multiple Choice

A "fragile state" is one that

• A) no longer exists.
• B) loses its seat at the United Nations.
• C) has recently changed government types.
• D) is unable to perform one of its vital functions.

---

Definitions:

Real Exchange Rate

The rate at which a person can exchange the currency of one country for the currency of another, adjusted for inflation.

Nominal Exchange Rate

The rate at which currencies are traded in the foreign exchange market, not considering differences in price levels between countries.

Domestic Price

The price of a good or service within a specific country, distinct from its price in international markets.

Depreciate

The process by which an asset's value decreases over time due to use, wear and tear, or obsolescence.