Holders of a foreign currency are willing to supply that currency to Americans in exchange for dollars
a. only because they want to buy American goods
b. only because they want to purchase American services
c. primarily because they want to purchase American assets
d. because they want to purchase American goods, services and assets
e. because their governments force them to do so
D
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Which of the following firms is most likely to be a monopoly?
A) local restaurant B) local distributor of natural gas C) local book store D) clothing store E) local bank
A U.S. citizen's gift for famine relief in Somalia would be considered a:
a. capital inflow. b. capital outflow. c. current account transaction. d. service trade transaction.
Refer to the accompanying figure. When P = 4, the price elasticity of demand for the demand curve D1 is ________ and D2 is ________.
A. 1/3; 3 B. 3; 3 C. 1/3; 2/3 D. 2/3; 1/3
Which of the following represents the lending capacity of an entire banking system?
A. Total reserves - required reserves. B. Required reserve ratio × total deposits. C. 1 ÷ (required reserve ratio). D. (Total reserves - required reserves) × money multiplier.