Balance of Payments Crises Under Fixed Exchange Rates Occur Because

question 49

Multiple Choice

Balance of payments crises under fixed exchange rates occur because of

• A) government policies that are inconsistent with fixed exchange rates.
• B) punitive currency wars.
• C) global inflation and trade imbalances due to war.
• D) excessive exports and imports that overload the global system.
• E) monotonic expansion in global currency volume.

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Definitions:

Chromosomes

Thread-like structures located inside the nucleus of animal and plant cells, made of protein and a single molecule of DNA.

Conception

The process of a sperm fertilizing an ovum, resulting in the formation of a zygote and the beginning of pregnancy.

Genetic Instructions

The information encoded in an organism's DNA that guides growth, development, and functioning.

Gelatinous Layer

A viscous coating found on many aquatic organisms, which plays roles in protection and adhesion.