Which of the Following Approaches to Exchange Rate Determination Postulates

question 35

Multiple Choice

Which of the following approaches to exchange rate determination postulates that the exchange rate is determined in the process of equilibrating the total demand and supply of the national currency in each nation?

• A)The purchasing-power parity theory
• B)The monetary model of exchange rates
• C)The trade approach to exchange rates
• D)The elasticities approach to exchange rates

---

Definitions:

Nominal Data

Data categorized into discrete groups or categories that cannot be ordered or ranked with respect to one another.

Ordinal Data

Ordinal data is a type of categorical data with a set order or scale to the possible values, but without a consistent difference between each value.

Quantitative Data

This refers to numerical data that can be measured and quantified, representing quantities, amounts, or levels.

Ordinal Data

Data that can be categorized and ranked; however, the intervals between the categories are not necessarily equal.