The forward exchange market:
a. Handles transactions for individuals or companies who would like to reduce foreign exchange risk by locking in exchange rates now.
b. Is a market with no default risk.
c. Provides sufficient liquidity for any maturity and amount.
d. All the above.
.A
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Which of the following is not "crowded out" by higher interest rates as a result of expansionary fiscal policy?
A) net exports B) private investment C) consumption D) government spending
Large-denomination CDs are ________, so that like a bond they can be resold in a ________ market before they mature
A) nonnegotiable; secondary B) nonnegotiable; primary C) negotiable; secondary D) negotiable; primary
When and why did Congress create the Federal Reserve System? What other attempts, if any, were made to establish a central bank in the United States?
What will be an ideal response?
Both foreign direct investment and foreign portfolio investment by U.S. residents increase U.S. net capital outflow
a. True b. False Indicate whether the statement is true or false