Under a System of Floating Exchange Rates, a Shortage in a Currency

question 146

Multiple Choice

Under a system of floating exchange rates, a shortage in a currency will lead to a(n)

• A) depreciation of that currency.
• B) appreciation of that currency.
• C) long-term surplus of that currency.
• D) long-term shortage of that currency.

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Definitions:

Functional Benefits

The practical or utilitarian advantages that a product or service provides to the consumer, such as convenience or time saving.

Communication Benefits

Advantages gained from effective exchange of information, such as improved understanding, collaboration, and efficiency.

Technology Benefits

Technology benefits refer to the positive outcomes or advantages derived from the use of technological tools, systems, or innovations, including increased efficiency, improved communication, and enhanced capabilities.

Brand Name

The name given to a product or service by a company, which identifies and differentiates it from others in the market.