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

question 35

Multiple Choice

Under a system of floating exchange rates, a surplus 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:

Fast-Growing

Describing organisms, businesses, or phenomena that expand or increase in size, scope, or number quickly over a short period.

Sustainable Agriculture

Farming practices that balance the need for food production with the preservation of environmental quality and the economic viability of farms.

Agroecology

An integrative science that applies ecological concepts and principles to the design and management of sustainable agricultural systems.

Organic Farming

An agricultural method that involves growing and nurturing crops without the use of synthetic pesticides, fertilizers, or genetically modified organisms.