Under the Current Managed Float Exchange Rate Regime,countries with Balance

question 34

Multiple Choice

Under the current managed float exchange rate regime,countries with balance of payments ________ frequently do not want to see their currencies ________ because it makes foreign goods more expensive for domestic consumers and can stimulate inflation.

• A)surpluses;depreciate
• B)deficits;depreciate
• C)surpluses;appreciate
• D)deficits;appreciate

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Definitions:

Investment

Assets purchased with the expectation that they will generate income in the future or appreciate in value.

Semiannually

Occurring twice a year, typically every six months.

Annual Return

This measures the financial gain or loss of an investment over a one-year period, expressed as a percentage of the investment's initial cost.

Investment

Items acquired with the hope that they will produce earnings or increase in value over time.