Under a Pegged Exchange-Rate System,which Does Not Explain Why a Country

question 145

Multiple Choice

Under a pegged exchange-rate system,which does not explain why a country would have a balance-of-payments deficit?

• A) Very high rates of inflation occur domestically
• B) Foreigners discriminate against domestic products
• C) Technological advance is superior abroad
• D) The domestic currency is undervalued relative to other currencies

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Definitions:

Monocultures

The agricultural practice of growing a single crop, plant, or livestock species in a field or farming system at a time.

Livestock Wastes

By-products of farm animal production, including manure and urine, which can contribute to pollution if not properly managed.

Groundwater

Water located beneath the Earth's surface in soil pore spaces and in the fractures of rock formations.

Habitat Degraded

Refers to the deterioration in quality and reduction in the value of habitats, affecting the organisms living there due to natural or human-induced causes.