Which one of the following is not a benefit of adopting a single currency?
(a) Reduced transaction costs.
(b) Increased price transparency.
(c) Lower interest rates.
(d) Reduced exchange rate uncertainty.
Answer: (a) Reduced transaction costs.
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Use the following figure to answer the question below.
Jorge's opportunity cost of producing 1 pound of green beans is ________ pound(s) of corn.
A. 1/4 B. 4 C. 2 D. 1
________ is the market structure in which there are a few rival firms
A) Perfect competition B) Monopolistic competition C) Monopoly D) Oligopoly
A special interest issue is best described as: a. one in which both sides utilize paid lobbyists to represent them
b. one which one party strongly supports and the other party strongly opposes. c. one in which a large number will each suffer small costs and a small number will each receive large benefits. d. one decided in a special session of the legislature.
Which of the following statements about speculators is not true?
a. Speculators use the forward market extensively. b. Speculators provide the foreign exchange market with liquidity c. Speculators make foreign exchange markets more efficient. d. Speculators cannot be completely shut out of the forward market, although the forward market is not intended for speculators. e. Only major currencies have very liquid forward markets