The price of a foreign currency expressed in terms of the home currency is called the:
a. exchange rate.
b. rate of depreciation.
c. dollar-yen ratio.
d. opportunity cost.
Ans: a. exchange rate.
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A) is an average cost pricing rule. B) sets price at a level that enables the regulated firm to earn a specified rate of return on its capital. C) is a marginal cost pricing rule. D) prevents the firm from engaging in any form of price discrimination.
Suppose a plaintiff hires a lawyer to represent her in a court case. The lawyer will receive a share of the settlement if the plaintiff wins. Under this contract
A) efficiency cannot be achieved. B) the client bears all of the risk. C) the lawyer bears all of the risk. D) the risk is shared.
In the open-economy macroeconomic model, the supply of dollars in the market for foreign-currency exchange is upward sloping
a. True b. False Indicate whether the statement is true or false
As a knowledgeable investor in 2007, you should have realized that as interest rates fell, bond prices would
A. also fall. B. rise. C. become more volatile, like stock prices. D. fall but not by as much as stock prices.