Match the terms on the left with the definition in the column on the right

Match:
1 A) B) C) D) E) F) G) H) I) J) K) purchasing power parity 2 A) B) C) D) E) F) G) H) I) J) K) monetary approach to exchange rates 3 A) B) C) D) E) F) G) H) I) J) K) law of one price 4 A) B) C) D) E) F) G) H) I) J) K) quantity theory of money 5 A) B) C) D) E) F) G) H) I) J) K) nominal effective exchange rate 6 A) B) C) D) E) F) G) H) I) J) K) real bilateral exchange rate 7 A) B) C) D) E) F) G) H) I) J) K) real effective exchange rate 8 A) B) C) D) E) F) G) H) I) J) K) nominal bilateral exchange rate 9 A) B) C) D) E) F) G) H) I) J) K) asset market approach to exchange rates 10 A) B) C) D) E) F) G) H) I) J) K) bandwagon 11 A) B) C) D) E) F) G) H) I) J) K) exchange rate overshooting			Answer choices for questions 1 through 11 A) when investors expect that the recent trend in exchange rates will continue. B) an exchange rate relative to one other specific country C) exchanges rates as quoted in foreign exchange markets D) says that the exchange rate should be equal to the ratio of the domestic price level to the foreign price level. E) the price of foreign goods in terms of currency- and price-level adjusted terms. F) in any country the money supply is equated with the demand for money, which is directly proportional to the value of GDP. G) when the currency exchange rate changes by much more than would be consistent with a long-run standard like purchasing power parity. H) emphasizes the importance of money supplies and demands as key to understanding the determinants of exchange rates. I) explains exchange rates as being part of the equilibrium for the markets for financial assets denominated in different currencies. J) the weighted-average exchange rate value of a country's currency. K) a single currency will have the same price everywhere, once the prices at difference places are expressed in the same currency.