Which of the Following Is NOT a Problem That May

question 34

Multiple Choice

Which of the following is NOT a problem that may be associated with rapid,unsustainable growth in an economy?

• A) An upward pressure on wages
• B) An increase in inflationary pressures
• C) An improvement in the current account of the balance of payments
• D) A rise in interest rates

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Definitions:

Spot Rate

The current exchange rate at which a currency can be bought or sold for immediate delivery.

Premium

The amount paid for an insurance policy or the price above the nominal or face value of a security or investment.

Swiss Francs

Swiss Francs are the currency of Switzerland, known for their stability and being a safe-haven currency in times of financial market volatility.

Forward Rate

The future interest rate agreed upon in a forward contract, determining the cost of borrowing or lending for future transactions.