When the Supply and Demand of Currencies in the Foreign

question 147

Multiple Choice

When the supply and demand of currencies in the foreign exchange market determines their relative values, this is known as

• A) flexible exchange rates.
• B) depreciation.
• C) fixed exchange rates.
• D) appreciation.

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Definitions:

Externality

An economic term referring to a side effect or consequence of an industrial or commercial activity that affects other parties without this being reflected in the cost of the goods or services involved.

New Edition

The latest version or release of a book, publication, or any media content, often updated with new information or corrections.

Buy Back

A transaction where a company purchases its own shares from the marketplace, which can reduce the amount of outstanding stocks and often increase the value of remaining shares.

Resell

The act of selling something previously bought, often to earn a profit or dispose of unwanted or excess items.