The ________ Approach Argues That Equilibrium Exchange Rates Are Achieved

question 38

Multiple Choice

The ________ approach argues that equilibrium exchange rates are achieved when the net inflow of foreign exchange arising from current account activities is equal to the net outflow of foreign exchange arising from financial account activities.

• A) balance of payments
• B) monetary
• C) asset market
• D) law of one price

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Definitions:

Appraisal

The act of evaluating or estimating the nature, quality, or importance of something or someone.

Biopsychosocial Model

An approach to understanding human health and illness that considers biological, psychological, and social factors.

Mental

Pertaining to the mind or psychological processes of cognition, perception, and emotion.

Physical Illness

A condition that affects the body's normal functions, often characterized by specific symptoms and signs.