Under the Current Managed Float Exchange Rate Regime;countries with Surpluses

question 98

Multiple Choice

Under the current managed float exchange rate regime;countries with surpluses in their balance of payments frequently do not want to see their currencies appreciate because it makes their goods ________ expensive abroad and foreign goods ________ in their countries.

• A)more;cheaper
• B)more;costlier
• C)less;cheaper
• D)less;costlier

---

Definitions:

Incremental

Pertaining to an increase or addition, especially in a series of small, regular steps.

Depreciation

A method of allocating the cost of a tangible asset over its useful life.

Amortization

The process of spreading out a loan into a series of fixed payments over time, covering both principal and interest.

Pure Endowment

An insurance policy where the insurer agrees to pay a specified sum of money at the end of a determined period on the condition that the insured is still alive.