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4916

A floating exchange rate means that the exchange rate is fixed by the

  • A. Ministry of Finance
  • B. forces of demand of supply
  • C. central bank of the country
  • D. International Monetary Fund(IMF)
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4917

A measure that can be adopted to correct a country's balance of payments deficit is to

 

  • A. allow the currency to appreciate to encourage inports
  • B. restrict trade with all countries
  • C. allow the currency to depreciate to encourage imports
  • D. adopt import substitution strategy
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4918

Records of a country's invisible trade are recorded in her

 

  • A. capital account
  • B. current account
  • C. financial account
  • D. trade account
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4919

If a country's import bill is high, she can encourage exports by

 

  • A. allowing her currency to appreciate
  • B. liberalizing importation
  • C. increasing taxes on all locally produced goods
  • D. allowing her currency to depreciate
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4920

If a country's imposes a barrier on trade, the resultant effect will be

 

  • A. a halt in buying and selling
  • B. an increase in the demand for locally produced goods
  • C. shutdown of infant industries
  • D. high quality goods from local industries
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