Exchange Rate Pass-Through May Be Defined As

question 14

Multiple Choice

Exchange rate pass-through may be defined as:

• A) the bid/ask spread on currency exchange rate transactions.
• B) the degree to which the prices of imported and exported goods change as a result of exchange rate changes.
• C) the PPP of lesser-developed countries.
• D) the practice by Great Britain of maintaining the relative strength of the currencies of the Commonwealth countries under the current floating exchange rate regime.

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