Kate has just decided to order a laptop computer that is made in China. She needs to convert U.S. dollars for Chinese yuan. This conversion takes place in the
A. International Monetary Fund.
B. foreign exchange markets.
C. target zone.
D. SDRs.
Answer: B
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Health insurance plans which typically reimburse doctors mainly by paying ________ are known as health maintenance organizations
A) an escalating fee based on the number of patients being treated B) a fee for each individual service provided C) a fee for each individual office visit D) a flat fee per patient
An example of an implicit cost is
a. rent. b. taxes. c. wages. d. forgone interest when investing one’s savings in one’s own business.
When government owns a natural monopoly and avoids subsidies, it:
A. still creates deadweight loss. B. sets price above marginal cost. C. recognizes setting price equal to marginal cost would cause the enterprise to incur losses. D. All of these statements are true.
Assume that the interest parity condition holds. Also assume that the U.S. interest rate is 8% while the U.K. interest rate is 6%. Given this information, financial markets expect the pound to
A) depreciate by 14%. B) depreciate by 2%. C) appreciate by 2%. D) appreciate by 6%. E) appreciate by 14%.