An overvalued exchange rate is an exchange rate:
A. that has an officially fixed value greater than its fundamental value.
B. that has an officially fixed value less than its fundamental value.
C. at which the quantities of currencies demanded and supplied in the foreign exchange market are equal.
D. that equals the number of units of a foreign currency over the number of units of domestic currency.
Answer: A
You might also like to view...
Taking action to reveal private information about someone else is called:
A. screening. B. signaling. C. discriminating. D. illegal.
Which of the following suggests that private markets can be effective in dealing with externalities?
a. the "invisible hand" b. the law of diminishing social returns c. the Coase theorem d. technology policy
Which of the following statements is correct? Monopolies are socially inefficient because they (i) charge a price above marginal cost. (ii) produce too little output. (iii) earn profits at the expense of consumers. (iv) maximize the market's total surplus
a. (iii) only b. (iii) and (iv) only c. (i) and (ii) only d. (i), (ii), (iii), and (iv)
Which of the following is income, as defined in economics?
(a) Salaries received by members of the Judiciary; (b) Scholarships awarded to high performance Leaving Certificate students; (c) Unemployment benefits paid to long term unemployed persons; (d) Both (a) and (b).