In a Freely Floating Exchange Rate System, If the Capital

question 9

Multiple Choice

In a freely floating exchange rate system, if the capital account surplus for the U.S. rises, what will most likely happen to the real value of the dollar?

• A) it will decline
• B) it will rise
• C) there is no impact on the dollar
• D) the IMF will step in to adjust rising exchange rates

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Definitions:

Private Nuisance

An unlawful interference with the use or enjoyment of a property, usually by causing harm or obstruction.

Tort

A civil wrong that causes someone else to suffer loss or harm, resulting in legal liability for the person who commits the tortious act.

Vicarious Liability

A legal principle that holds one party liable for the actions of another, based on the relationship between the two parties.

Occupiers' Liability Act

Legislation governing the responsibility of property owners or occupiers to ensure the safety of individuals on their premises.