When Residents and Nonresidents of a Country Rush to Convert

question 74

Multiple Choice

When residents and nonresidents of a country rush to convert their holdings of domestic currency into a foreign currency it is an example of

• A)deflation.
• B)arbitrage.
• C)liquidity rush.
• D)capital flight.
• E)currency swap.

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Definitions:

Expectancy Theory

A motivational theory suggesting that an individual's motivation is influenced by their expectation of achieving a desired outcome and the value they place on that outcome.

Anticipated Satisfaction

The expectation of fulfillment or happiness one believes will come from acquiring or achieving something in the future.

Goal-Setting Process

A systematic approach to setting objectives that are specific, measurable, achievable, relevant, and time-bound (SMART).

Goal Quality

The extent to which goals set within an organization or by an individual are clear, attainable, and measurable.