Under a system of floating exchange rates there is a general tendency for ?
A. exchange rates to be insensitive to the differential rates of inflation between countries
B. the currencies of relatively high-inflation countries to depreciate
C. the currencies of relatively high inflation countries to appreciate
D. the currencies of relatively low inflation countries to depreciate
The rise in value of one currency relative to another is ?
A. a weakening of a currency
B. A depreciation of a currency
C. An appreciation of a currency
D. a debasement of a currency
A fiscal expansion in the UK ?
A. has no predictable effect on the price of the pound sterling?
B. does not affect the price of the pound sterling
C. tends to appreciate the pound sterling
D. tends to depreciate the pound sterling
Exchange rates that are determined by the unregulated forces of supply and demand are ?
A. floating exchange rates
B. pegged exchange rates
C. managed exchange rates
D. fixed exchange rates
The agreements that were reached at the Bretton Woods conferences in 1944 established a system ?
A. of essentially fixed exchange rates under which each country agreed to intervene in the foreign exchange market when necessary to maintain the agreed
B. in which the value of currencies was fixed in terms of a specific number of ounces of gold, which in turn determined their values in international tra
C. of floating exchange rates determined of the supply and demand of one nation’s currency relative to the currency of other nations
D. That prohibited governments from intervening in the foreign exchange markets
The price of one country’s currency in terms of another country’s currency is the ?
A. exchange rate
B. balance of trade
C. terms of trade
D. currency valuation