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International Trade Answers

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What is a currency exchange rate?

A
the money returned when a person overpays
B
the amount of a currency needed to account for a rise in inflation
C
the value of one currency in relation to another
D
a series of currency fluctuations over a period of time
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What has the president of Venezuela done by devaluating the bolivar?

A
allowed the exchange rate to be set by supply and demand
B
artificially increased the number of bolivars needed to buy one US dollar
C
artificially decreased the number of bolivars needed to buy one US dollar
D
allowed the exchange rate to remain unchanged for the near future
10

What is the expected effect of the devaluation among Venezuela’s population?

A
rising inflation
B
price deflation
C
increased imports
D
declining inflation
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