Question : A country with a trade surplus is likely to experience:

Option 1: Appreciation of its currency
 

Option 2: Depreciation of its currency
 

Option 3: No impact on its currency

Option 4: A fixed exchange rate

Question : If aggregate supply exceeds aggregate demand, the economy is likely to experience:

Option 1: Inflationary pressure
 

Option 2: Deflationary pressure
 

Option 3: Recessionary pressure

Option 4: Stagflation

Question : What is the term used to describe the practice of a country manipulating its currency to gain an unfair trade advantage?

Option 1: Currency hedging
    

Option 2: Currency speculation
    

Option 3: Currency pegging

Option 4: Currency manipulation

Question : A decrease in a country's exports is likely to result in:

Option 1: Appreciation of its currency
 

Option 2: Depreciation of its currency
 

Option 3: No impact on its currency

Option 4: A fixed exchange rate

Question : What is the term used to describe a situation where a country's central bank fixes the value of its currency to another currency at a specified exchange rate?

Option 1: Currency intervention
  

Option 2: Currency hedging
 

Option 3: Currency manipulation

Option 4: Currency pegging