A German individual buys shares in a U.S. company. This transaction will be entered as a
A. credit in the U.S. current account.
B. debit in the U.S. capital account.
C. debit in the U.S. current account.
D. credit in the U.S. capital account.
Answer: D
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Refer to the figure below. If all buyers' reservation prices increase by $1.00, then the equilibrium price of coffee would: 
A. increase by more than $1.00. B. would not change. C. increase by less than $1.00. D. increase by $1.00.
If a firm is due to be paid in euros in two months, to hedge against exchange-rate risk the firm should ________ foreign exchange futures ________
A) sell; short B) buy; long C) sell; long D) buy; short
Seasonal or cyclical variation in a time series model
A. is regular in nature and can be accounted for by dummy variables. B. can decrease the accuracy of a forecast if not accounted for by dummy variables. C. exhibits irregular variation that can be accounted for by dummy variables. D. both a and b E. both b and c
Which of the following was not a cause of the Savings and Loan crisis of the 1980s?
(A) The gold standard (B) High interest rates (C) The deregulation of the industry (D) Bad loans