The foreign exchange market is the market in which:
A. ideas from different countries are exchanged.
B. currencies of different countries are bought and sold.
C. foreign stocks and bonds are bought and sold.
D. foreigners buy U.S. real estate.
Answer: B
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Indicate whether the statement is true or false
Suppose the Federal Reserve wanted to reduce the money supply without using open-market operations
It could try to get the public to ________ their currency—deposit ratio and ________ banks' reserve requirements, which would in turn change the banks' reserve—deposit ratio. A) decrease; lower B) decrease; raise C) increase; lower D) increase; raise
Suppose your neighbor likes to repair motorcycles in his front yard during evenings and on weekends, and he earns $400 per week from this work
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Until the beginning of the 20th century, the overriding and chronic money problem the United States faced was
a. an overreaching and politically controlled Federal Reserve System b. an inability to persuade the Treasury to make open market operations c. the banks' inclination to overissue currency d. the inability of the Federal Open Market Committee to agree among themselves on policy issues e. the linking of fiscal and monetary policy by the central bank