The ________ Approach to the Determination of Spot Exchange Rates

question 56

Multiple Choice

The ________ approach to the determination of spot exchange rates hypothesizes that the most important factors are the relative real interest rate and a country's outlook for economic growth and profitability.

• A) balance of payments
• B) parity conditions
• C) managed float
• D) asset market

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Definitions:

Need For Affiliation

The desire to establish and maintain good relations with people.

Need For Affiliation

A social need that drives individuals to seek and form relationships with others, motivated by a desire for companionship and acceptance.

Acquired Needs Theory

A motivational theory that suggests individuals develop certain needs through their life experiences, including the needs for achievement, affiliation, and power.

Companionship

The feeling of fellowship or friendship that arises from being with others, often contributing to emotional and social well-being.