An investment exposed to exchange-rate risk is a(n) ________ international investment.
A. hedged
B. arbitrage
C. covered
D. uncovered
Answer: D
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Credit unions made it through the 1980s in relatively good shape because
A) most of their depositors were individuals. B) most of their depositors were businesses. C) they held many mortgages among their assets. D) they held no mortgages among their assets.
The recent flexible exchange rate system developed because of: a. the controversies generated by trade surplus nations wanting to devalue their currencies
b. the huge debts owed to the IMF by less-developed countries. c. governments were unable to agree on an alternative to a fixed-rate approach when the Bretton Woods system collapsed. d. the controversies generated by trade deficit nations wanting to raise the value of their currencies.
The slope of a demand curve is almost always
a. positive, because when people buy more of a good the cost of producing it will rise. b. positive, because the more money a person has, the more of a particular good will be bought. c. negative, because when people buy more of a good the cost of producing it will fall. d. negative, because with everything else equal, the same people will buy more of a good when its price is lower. e. positive, because as the price rises, people want to sell more of the good.
Which of the following illustrates the data lag?
A) The economy turns down on January 8, 2006, but policymakers do not figure this out until April 19, 2006. B) Policymakers wait and see what is really going on with the economy. C) Policymakers implement policy X on September 12, 2006, but the effects are not felt until six months later. D) The data lag is illustrated equally well by a, b, and c.