Which of the Following Occurs When Residents and Nonresidents of a Country

question 26

Multiple Choice

Which of the following occurs when residents and nonresidents of a country rush to convert their holdings of domestic currency into a foreign currency?

• A)Deflation
• B)Arbitrage
• C)Liquidity rush
• D)Capital flight
• E)Currency swap

---

Definitions:

Accuracy Matters

A principle asserting the importance of precision and correctness in actions, information, and decisions.

Promotion

The activity or action of raising someone to a higher rank or the act of encouraging the sale or awareness of a product.

Well-Being

The state of being comfortable, healthy, or happy, encompassing both physical and psychological aspects of an individual's life.

Acquaintanceship Effect

The phenomenon where people tend to develop more positive evaluations of others as they become more familiar with them.