Currency Equilibrium Is More Academic Than Real Because

question 14

Multiple Choice

Currency equilibrium is more academic than real because:

• A)the concept of currency equilibrium was developed by an theoretical economist and has never been observed in practice.
• B)when a currency approaches equilibrium,governments act to avoid currency equilibrium.
• C)supply and demand constantly react to market forces so that the amount demanded and the amount supplied of a currency are almost never the same.
• D)some currencies are pegged and some currencies are free floating so that react to market forces differently.

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Definitions:

Veto Legislation

The power of an executive authority to refuse approval of a bill or proposal, preventing its enactment into law.

Discretion

The freedom to decide what should be done in a particular situation, often given to officials or agencies in executing laws and policies.

Treaty Ratification

The formal approval process of a treaty by a country's legislative body, making the treaty legally binding.

Senate Vote

A formal expression of opinion or choice, either positive or negative, made by an individual senator or the collective senate body in legislative decision-making.