When exchange rates are flexible, they are
A. Determined by proclamation of the monetary authorities of a country.
B. Permitted to vary with changes in supply and demand in the foreign exchange market.
C. Determined by the provisions of the Bretton Woods agreement.
D. Determined by the relative levels of gold reserves.
Answer: B
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All of the following are examples of conditional sales except which one?
A) territorial confinement B) tying arrangements C) exclusive dealing D) price discrimination
A rapidly falling stock price would most likely trigger all of the following except:
A. a flood of margin calls. B. massive sales of the stock. C. the price to be pushed down even more. D. a massive amount of purchases.
Which of the following groups are typically harmed by unexpected inflation?
a. lenders b. borrowers c. pensioners on fixed incomes d. both (a) and (c).
A decrease in the discount rate will:
A. decrease the money supply. B. not affect the money supply. C. increase the money supply. D. have an unclear effect on the money supply.