Exchange Rates
The exchange rate between currencies is the number of units of one nation’s currency that equals one unit of another nation’s currency.
Exchange rates float, meaning they are determined by supply and demand for any given currency.
Demand for the dollar on exchange markets is determined by foreigners wanting to buy US goods with US dollars. When the dollar is “weak” the US exports more goods and services because they are relatively cheap to foreigners.
You might also like to view...
The largest percentage of federal income tax revenue in the United States is paid by the
A) middle income taxpayers. B) highest income taxpayers. C) lowest income taxpayers. D) All groups of taxpayers—low income, high income and middle income—pay the same percent of federal income taxes.
Ball found that the disinflation of the early 1980s in the United States had a sacrifice ratio of about
A) 0. B) 1. C) 2. D) 3.
The standard deviation of a two-asset portfolio (with a risky and a non-risky asset) is equal to
A) the fraction invested in the risky asset times the standard deviation of the non-risky asset. B) the fraction invested in the non-risky asset times the standard deviation of the risky asset. C) the fraction invested in the risky asset times the standard deviation of that asset. D) the fraction invested in the non-risky asset times the standard deviation of that asset.
As the inventory of a firm rises
A. there is no change in its capital. B. its tangible capital increases. C. its intangible capital increases. D. its social capital decreases.