One Important View of the Determination of the Foreign Exchange

question 14

Multiple Choice

One important view of the determination of the foreign exchange value of a currency is given in the purchasing power parity theory.The theory states,in effect,that:

• A) any national currency should have equal buying power, given current exchange rates.
• B) although prices in one country may rise faster than in another, parity is maintained.
• C) lower prices in one country are offset by a depreciation of the currency in another country.
• D) all of the given answers are correct.

---

Definitions:

Usually Young

Often describing individuals in their early years of life, emphasizing youth.

Usually Men

The term "usually men" implies that certain behaviors, tendencies, or patterns are predominantly associated with or observed in male individuals.

More Likely To Be Poor

A higher probability or tendency for certain individuals or groups to experience poverty due to various socioeconomic factors.

Ensuring Empty House

The act or strategy of making sure a house or dwelling is unoccupied, typically for nefarious purposes.