Which of the following is an example of a managed float?
a. The Fed buys or sells U.S. dollars in order to maintain a fixed $1.05 per euro exchange rate.
b. The European Central Bank buys or sells euros in order to "peg" the price level.
c. The Bank of England buys or sells British pounds in order to maintain a fixed exchange rate with the U.S. dollar.
d. The Bank of Japan intervenes in the foreign exchange market to prevent a rapid depreciation of the yen.
e. The Bank of Japan intervenes to set the tax rate very close to the tax rates of other countries.
D
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Since foreign credit dries up in crises when it is most needed, developing countries can protect themselves from default by
A) cutting off imports of goods. B) allowing the exchange rate to float. C) using equity finance only. D) accumulating high levels of international reserves. E) avoiding the international capital market.
A marginal change is a small incremental adjustment to an existing plan of action
a. True b. False Indicate whether the statement is true or false
The more dollars that must be given up to buy one British pound, the __________ American goods are for the British and the __________ American goods the British will buy; thus __________ dollars will be demanded
A) more expensive; fewer, more B) less expensive; more, more C) more expensive; fewer, fewer D) less expensive; fewer, more E) none of the above
Investors who purchase shares of stock in a company are called? ________.
A. sole proprietors B. board members C. shareholders D. general partners E. limited partners