Which of the following companies would gain from foreign currency depreciation?
a. companies which borrow in foreign currency.
b. companies which export goods and services.
c. companies which invest in the foreign equity markets.
d. companies which buy bonds issued by the foreign government.
a
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How would economists interpret the following facts? Fact: Over the past two decades the relative price of new textbooks has risen dramatically. Another fact: Record numbers of new textbooks have been purchased by students over the past two decades
A) The law of demand has been violated. B) The law of supply has been violated. C) The supply and demand process in new textbooks hasn't worked correctly. D) The demand for textbooks has increased. E) The facts aren't true.
The primary liabilities of a commercial bank are
A) bonds. B) mortgages. C) deposits. D) commercial paper.
An effective Federal Reserve operating target is a target that is reliably linked to
A) inflation and unemployment rates. B) other operating targets. C) fiscal policy. D) open market operations.
According to the figure shown:
A. there is no stable equilibrium to the game.
B. both players will act in their own self-interest and get a stable, but less than optimum, equilibrium.
C. both players will act in their own self-interest and get an optimum equilibrium that is stable.
D. both players have an incentive to charge a low price and undercut the competition.