The Expectation of Future Devaluation Causes a Balance of Payments

question 28

Multiple Choice

The expectation of future devaluation causes a balance of payments crisis marked by

• A) a sharp rise in reserves and a fall in the home interest rate below the world interest rate.
• B) a sharp fall in reserves and an even bigger fall in the home interest rate below the world interest rate.
• C) a sharp fall in reserves and a rise in the home interest rate above the world interest rate.
• D) a sharp rise in reserves and an even greater rise in the home interest rate above the world interest.
• E) a sharp rise in reserves and a rise in the home interest rate to the level of the world interest.

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Definitions:

Non-targeted Species

Organisms that are unintentionally affected by human activities or control measures aimed at other species.

Human Activities

Actions by humans that affect the environment, economy, and society, ranging from agriculture and industry to recreation and urban development.

Large Catches

Large catches refer to the significant quantities of fish or other marine organisms captured at once by fishing operations, which can impact marine populations and ecosystems.

Conservationist

An individual or a group actively involved in the protection and preservation of nature and wildlife, often advocating for sustainable practices to protect the environment.