According to the Monetary Approach, What Matters in Exchange Rate

question 6

Multiple Choice

According to the monetary approach, what matters in exchange rate determination are

• A)the relative money supplies.
• B)the relative velocities of monies.
• C)the relative national outputs.
• D)all of the above

---

Definitions:

Sir Walter Raleigh

An English adventurer, writer, and courtier of the late 16th and early 17th centuries, known for his exploration of America and attempts to establish colonies.

English Settlement

Refers to the establishment of communities and colonies by English people in foreign territories, notably in the Americas, during the 16th and 17th centuries.

Privateers

Armed private ships licensed to attack enemy shipping during wartime, functioning as a form of outsourced naval warfare.

Colonize

The act of establishing control over foreign lands and peoples, often involving settlement and economic exploitation, forming colonies that are subject to the colonizing nation.