Country a Has a Higher Inflation Rate Than Country B

question 19

Multiple Choice

Country A has a higher inflation rate than Country B. In this case Country A will have the:

• A) a depreciating currency.
• B) higher nominal interest rate.
• C) an appreciating currency.
• D) higher real interest rate.

---

Definitions:

Risk of Loss

The legal and financial responsibility for damages or loss to goods, typically determined by the terms of a contract or by law.

Common-carrier Delivery

The transportation of goods or people by a commercial service available to the public under license or authority provided by a regulatory body.

Goods-in-bailment

Items that are temporarily delivered into the care of another, under a bailment agreement, without transfer of ownership.

Ambiguous

Something that is unclear or can be understood in more than one way because of vague or incomplete information.