Suppose the government releases information that causes people to expect that the purchasing power of a money in the future will be less than they previously had expected. What will happen to the exchange rate today? Why?
What will be an ideal response?
Typically, when people think that the purchasing power of a money is going to decline in the future, due to higher expected inflation, they try to sell that currency today to get into a currency that will have more stable purchasing power. This reduced demand for the currency causes that currency to weaken or depreciate immediately.
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Which of the following statements is true about investments categorized as trading securities?
a. They are valued on the balance sheet at cost. b. They can consist of debt, but not equity, securities. c. They are purchased to be held to maturity. d. Changes in market value are reflected in net income.
Which type of culture is found in companies where employees tend to keep to themselves, avoid socializing, and work as individuals rather than part of a team?
a. Ethical b. Networked c. Fragmented d. Communal
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Indicate whether the statement is true or false
There are three plants scattered across the United States that manufacture Dull computers. These plants assemble products for customers throughout the United States, Canada, and Mexico
If Dull wishes to maximize profit by choosing the most economical pair of factory and customer for each order, they would be well-advised to follow the ________ model presented in this chapter. Fill in the blank with correct word.