IIA Exam IIA-CIA-Part3 Topic 6 Question 23 Discussion

Actual exam question for IIA's IIA-CIA-Part3 exam

Question #: 23
Topic #: 6

Countries X and Y both have freely floating exchange rate systems and an active trading relationship. If incomes [List A] in country X while all other factors remain unchanged, then the currency of country X will tend to [List B] relative to the currency of country Y.

AList A
List B

BRise
Remain constant
Rise
Depreciate

CFall
Depreciate

DRemain constant
Appreciate

Show Suggested Answer

Suggested Answer: B

by Josephine at May 10, 2022, 12:10 AM

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Scarlet

4 days ago

I vaguely recall that higher incomes can lead to a rise in demand for foreign goods, which might mean the currency depreciates.

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Catrice

11 days ago

I'm not really sure what exact documentation they're referring to. I feel like it could also be about attendance records since that's important too.

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Louisa

15 days ago

This seems like a straightforward question about the purpose of a Value Improving Proposal. I'll carefully read through the options and choose the one that best describes what a VIP provides.

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Joaquin

17 days ago

This is a tricky one. I'm leaning towards A or D, but I'm not entirely confident. I'll need to review the differences between FHRP and vPC to make sure I fully understand the implications of each approach.

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