Which of the following scenarios would tend to raise the value of the U.S. dollar in foreign exchange markets?
A. An increase in the U.S. demand for foreign oil
B. A rise in U.S. interest rates
C. Enactment of contractionary fiscal policy in the United States
D. Enactment of easy monetary policy in the United States
Answer: B
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The Federal Reserve System was created in response to
A) the stock market crash of 1929. B) the ending of the Civil War. C) the banking panic of 1907. D) difficulties of the free-banking era.
An increase in the rate of interest, other things being equal, will cause a(n):
A. downward shift in the investment demand curve. B. movement downward along the investment demand curve. C. movement upward along the investment demand curve. D. upward shift in the investment demand curve.
If a firm's sales turn out to be more than expected, inventories will be
A. lower than expected, and there will be more production in the future. B. lower than expected, and there will be less production in the future. C. higher than expected, and there will be less production in the future. D. higher than expected, and there will be more production in the future.
The statement of assets and liabilities of an entity is referred to as:
A) the balance of payments. B) a balance sheet. C) an asset-liability sheet. D) a profit and loss statement.