Forward exchange contracts are used for hedging but not for speculating.

Answer the following statement true (T) or false (F)


False

Economics

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Which of the following is NOT true about the duties the Fed performs for the federal government?

A) The U.S. Treasury has a checking account at the Fed. B) The Federal Reserve aids in the purchase and sale of certain government securities. C) The U.S. Treasury controls the Fed. D) The Federal Reserve is the banker and fiscal agent of the federal government.

Economics

When economic profits in a perfectly competitive industry are positive

A) new firms will be attracted to the industry, and economic profits will decline to zero. B) the industry is in equilibrium. C) firms will increase output to earn even higher profits. D) firms will increase prices while they have the opportunity.

Economics

When the housing bubble popped, the effect of the negative demand side shock and the negative supply side shock were the same on:

A. output, causing it to definitely decrease. B. prices, causing them to definitely rise. C. output, causing it to definitely increase. D. prices, causing them to definitely fall.

Economics

Normative economics is

A. analysis of the behavior of the economy as a whole. B. analysis that is strictly limited to making either purely descriptive statements or scientific predictions. C. decision making undertaken by households and business firms. D. analysis involving value judgments about economic policies; or a statement of "what ought to be."

Economics