The Following Example Supports Which Extension to the Monetary Approach

question 22

Multiple Choice

The following example supports which extension to the Monetary Approach to Exchange rates: The cost of holding a U.S.dollar rises relative to the cost of holding U.K.Pounds.The demand shifts away from dollars to Pounds.

• A) General equilibrium approach
• B) Trade balance approach
• C) Overshooting approach
• D) Currency substitution approach

---

Definitions:

Budgeting

The process of creating a plan to spend your money, forecasting income and expenditures over a set period.

Medical Supplies

Items used in medical care, ranging from consumables like syringes and bandages to more complex equipment such as defibrillators and patient monitoring systems.

Flexible Budget

A budget that adjusts or changes according to the level of activity or volume of production in an organization.

Budgeting

The process of creating a plan to spend your money, outlining future financial goals and strategies for achieving them.