The Idea That Commodities Have the Same Value No Matter

question 22

Multiple Choice

The idea that commodities have the same value no matter where they are purchased or what currency is used is known as _____ parity.

• A) forward exchange rates
• B) absolute purchasing power
• C) interest rate
• D) relative purchasing power
• E) uncovered interest rate

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Definitions:

Jacobo Arbenz Guzmán

A Guatemalan military officer and politician who served as the President of Guatemala from 1951 to 1954 and was overthrown by a CIA-backed coup.

Soviet Union

A socialist state that existed from 1922 to 1991, comprised of multiple subnational Soviet republics, with a government based on a one-party system led by the Communist Party.

Military Aid

The provision by a country of military resources, such as weapons, equipment, training, and sometimes troops, to another country to help bolster the latter's defense capabilities.

CIA

The Central Intelligence Agency, a civilian foreign intelligence service of the federal government of the United States tasked with gathering, processing, and analyzing national security information.