The Expectation of Future Revaluation Causes a Balance of Payments

question 40

Multiple Choice

The expectation of future revaluation 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 fall in reserves and an unchanged home interest rate.

---

Definitions:

Hate Crime

A criminal act motivated by bias or prejudice against a particular group characterized by race, religion, sexual orientation, or other defining attributes.

Swastikas

An ancient symbol used in various cultures, most notoriously appropriated by the Nazi Party as a symbol of Aryan identity and German nationalist pride.

Vandalized

Deliberately destroying or damaging property in an act of defacement or malicious mischief.

Religiously Unaffiliated

Individuals who do not identify with any organized religion, sometimes referred to as "nones".