According to the ________,If the Cost of Holding One Currency

question 39

Multiple Choice

According to the ________,if the cost of holding one currency rises relative to the cost of holding another,then demand will shift to the lower relative cost currency.

• A) Overshooting approach
• B) Currency substitution approach
• C) Portfolio-balance approach
• D) Trade balance approach

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Definitions:

Conflict Buying Time

A strategy used in conflict resolution where time is intentionally taken before responding or making a decision, to allow for de-escalation and thoughtful consideration.

Defense Mechanism

Psychological strategies used unconsciously to protect oneself from anxiety arising from unacceptable thoughts or feelings.

Negativism

An aggressive mechanism in which a person responds with pessimism to any attempt at solving a problem.

Pessimism

A tendency to see the worst aspect of things or believe that the worst will happen; a lack of hope or confidence in the future.