The speculative demand for holding money is when people hold money:
a. instead of near money.
b. to transact purchases they expect to make.
c. as insurance against unexpected needs.
d. to speculate in the stock market.
e. to take advantage of changes in interest rates.
e
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Refer to Figure 19-4. The equilibrium exchange rate is at A, $3/pound. Suppose the British government pegs its currency at $4/pound. At the pegged exchange rate,
A) there is a surplus of pounds equal to 600 million. B) there is a shortage of pounds equal to 200 million. C) there is a surplus of pounds equal to 400 million. D) there is a shortage of pounds equal to 400 million. E) there is a shortage of pounds equal to 600 million.
The JOBS program was generously funded
Indicate whether the statement is true or false
In a country's balance of payments, which of the following items will be recorded as a debit entry?
A. Domestic bank balances owned by foreigners are reduced B. Securities are sold by domestic residents to nonresidents C. Foreign bank balances owned by domestic residents are reduced D. Assets owned by domestic residents are sold to nonresidents
A chief purpose of long-term contracts is to improve agents'
A) information. B) incentives. C) control over principals. D) security.