Foreign exchange contracts, such as futures, swaps, and options, are collectively known as:
a. derivatives.
b. deposits.
c. spot contracts.
d. spreads.
Answer: a. derivatives.
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In the figure above, suppose the original budget line is BD. A rise in the price of a compact disc will
A) rotate the budget line to AD. B) rotate the budget line to CD. C) not move the budget line. D) result in a parallel leftward shift of the budget line.
Many countries dropped their use of money-growth targets in the 1980s because
A) they were in severe recessions. B) political opponents claimed money-growth targeting helped the rich at the expense of the poor. C) money demand became unstable. D) it was too difficult to coordinate monetary policy with fiscal policy.
The famous phrase "the invisible hand" is associated with the economist ______________ ____________.
Fill in the blank(s) with the appropriate word(s).
The immigration of skilled scientists and engineers from other nations will have which of the following effects?
A. The supply curve for innovative activities will be pushed to the right, increasing the amount of innovation. B. The demand curve for innovative activities will be pushed to the left, decreasing the amount of innovation. C. The demand curve for innovative activities will be pushed to the right, increasing the amount of innovation. D. The supply curve for innovative activities will be pushed to the left, increasing the amount of innovation.