Which of the Following Statements Is True Regarding Hard Currencies

question 90

Multiple Choice

Which of the following statements is true regarding hard currencies?

• A)Countries with hard currency typically use the barter system when exporting goods.
• B)The U.S.dollar is an example of hard currency,which is easily converted into other currencies.
• C)Hard currency is difficult to convert into other currency.
• D)A country with hard currency is likely to have a trade deficit.

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Definitions:

Break-even

The point at which cost or expenses and revenue are equal, resulting in neither profit nor loss.

Long-run Equilibrium

A state in which all factors of production and costs are variable, and firms are making neither excess profits nor losses.

Short-run Equilibrium

Short-run Equilibrium occurs in a market when the quantity supplied equals the quantity demanded at a specific price level, without considering changes in the long run.

Market Participants

Individuals or entities engaging in the buying, selling, or exchange of goods and services in a market.