Suppose that foreign citizens decide to purchase more U.S. pharmaceuticals and U.S. citizens decide to buy more stock in foreign corporations. Other things the same, these actions
a. raise both U.S. net exports and U.S. net capital outflows.
b. raise U.S. net exports and lower U.S. net capital outflows.
c. lower both U.S. net exports and U.S. net capital outflows.
d. lower U.S. net exports and raise U.S. net capital outflows.
a
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When the financial institution is hedging interest-rate risk on its overall portfolio, then the hedge is a
A) macro hedge. B) micro hedge. C) cross hedge. D) futures hedge.
In a two-person bargaining situation it is
A) always in the best interests of both players for each player to be as flexible as possible, and to have as many options as possible. B) always in the best interest of the player that moves first to be as flexible as possible, and to have as many options as possible. C) often in the best interest of players to pretend a game is noncooperative when it is not, and vice versa. D) often in the best interest of players to cut off some of their own options in order to make the other player's threats not credible. E) often in the best interest of players to cut off some of their own options in order to make their own threats credible.
Commercial banks that are members of the Federal Reserve System actually choose some of the directors of the 12 Federal Reserve District banks
a. True b. False
Changes in U.S. citizens' holdings of long-term financial and physical assets in another country are reported in
A. the capital account. B. total exports of goods and services. C. the current account. D. the trade balance.