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

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Definitions:

Psychological Toll

The psychological toll refers to the mental and emotional burden or strain experienced as a result of stressful, traumatic, or challenging situations.

Survivors

Individuals who have lived through a dangerous or life-threatening event or situation and are often coping with the aftermath or consequences of such experiences.

Belongings

Personal items or possessions owned by an individual.

Destroyed

To have been completely ruined or demolished, leaving nothing salvageable or in its original state.