A central bank ________ of domestic currency and corresponding ________ of foreign assets in the foreign exchange market leads to an equal decline in its international reserves and the monetary base, everything else held constant
A) sale; purchase
B) sale; sale
C) purchase; sale
D) purchase; purchase
C
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Refer to Table 4-2. The table above lists the highest prices five consumers are willing to pay for a concert ticket. If the price of one of the tickets is $20
A) only Violet and Walter will buy tickets. B) everyone will buy a ticket except for Zachary. C) the total consumer surplus from the purchase of tickets will be $122. D) Xavier's consumer surplus is $50.
The Fed accidentally discovered open market operations when
A) it came to the rescue of failing banks in the early 1930s, and found that its purchases of bank loans injected reserves into the banking system. B) it purchased securities for income following the 1920-1921 recession. C) it attempted to slow inflation in 1919 by selling securities and found that its sales drained reserves from the banking system. D) it reinterpreted a key provision of the Federal Reserve Act.
Monopoly power results from the ability to
A) set price equal to marginal cost. B) equate marginal cost to marginal revenue. C) set price above average variable cost. D) set price above marginal cost.
In which of the following categories would an agreement to trade currencies in pre-set amounts at a certain date in the future be included?
a. an option b. a futures contract c. a forward contract d. a swap