When the supply and demand of currencies in the foreign exchange market determines their relative values, this is known as
A. fixed exchange rates.
B. flexible exchange rates.
C. appreciation.
D. depreciation.
Answer: B
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Use the following diagram for the market for money to answer the next question.
The vertical money supply curve Sm reflects the fact that
A. bond prices and interest rates are inversely related. B. the rate at which money is spent is zero. C. the stock of money is determined by the Federal Reserve System and does not change when the interest rate changes. D. lower interest rates result in lower opportunity costs of supplying money.
As a form of business, a sole proprietorship
A) cannot issue stock. B) has limited liability. C) has the most government rules and regulations affecting it. D) has more than one owner.
is caused by drops in total production.
A. Structural unemployment B. Frictional unemployment C. Seasonal unemployment D. Cyclical unemployment
Most money in the US is created when
a. commercial banks make more loans b. commercial banks increase their liabilities c. the US Mint prints more US currency d. Investment banks increase their number of IPOs