Asked by Poppin galaxy on Jun 30, 2024
Verified
The nation of Gregoran wants to purchase liquefied petroleum gas and diesel fuel from oil refineries based in the nation of Frodaria. Since Gregoran's currency is overvalued, Gregoran swaps its currency with the currency of Frodaria. In this scenario, the nation of Gregoran engages in:
A) currency domination.
B) currency extraction.
C) currency blocking.
D) currency exchange.
Overvalued
When the market price of an asset exceeds its intrinsic value.
Liquefied Petroleum Gas
A fuel gas made of hydrocarbons like propane and butane, used in heating appliances, cooking equipment, and vehicles.
Currency Exchange
The process by which entities swap one nation’s currency for that of another.
- Understand the role and mechanism of currency exchange in international trade.
Verified Answer
JG
Jaida GrahamJul 01, 2024
Final Answer :
D
Explanation :
The nation of Gregoran is engaging in a currency exchange, which involves swapping its own currency with that of another country (Frodaria) to facilitate trade, in this case, the purchase of liquefied petroleum gas and diesel fuel.
Learning Objectives
- Understand the role and mechanism of currency exchange in international trade.