Illiquid Currencies Tend to Exhibit ____ Volatile Exchange Rate Movements

question 25

Multiple Choice

Illiquid currencies tend to exhibit ____ volatile exchange rate movements, as the equilibrium prices of their currencies adjust to ____ changes in supply and demand conditions.

• A) less; even minor
• B) less; only large
• C) more; even minor
• D) more; only large
• E) none of the above

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Definitions:

Insufficient

The lack of enough resources, quantity, or capacity to meet a demand or requirement.

Scarcity

A fundamental economic problem of having seemingly unlimited human wants in a world of limited resources, leading to the necessity of making choices.

Microeconomics

The branch of economics that studies how individuals, households, and firms make decisions and allocate resources.

Alternatives

Options or choices available in any given situation.