If a currency has a fixed exchange rate, it is not subject to the forces of supply and demand
Indicate whether the statement is true or false
FALSE
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In the days before electronic market transactions, if only a few people had ready access to exchange-rate information, such as knowing the latest on euros per dollar or dollars per Mexican peso, then there was the possibility for
a. market forces to create fixed exchanged rates b. government fixing exchange rates c. arbitrage d. exchange rate controls e. unintentional trade deficits
Consumer spending represents about what fraction of total spending in the economy?
a. one-fifth b. two-thirds c. one-third d. two-fifths e. three-fourths
Financial markets do not function as well as they could due to:
A. the cost of obtaining information which can be high. B. fluctuations in the inflation rate. C. regulation by governments. D. the fact that banking is highly monopolized.
Why is a monopolist's marginal revenue less than the price?
What will be an ideal response?