A currency swap can
A) make foreign goods more expensive in the domestic market.
B) make the foreign exchange rate more volatile over time.
C) reduce foreign exchange risk.
D) make domestic goods more expensive in foreign countries.
Answer: C
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Which of the following is a difference between a perfectly competitive market and a monopoly?
A) There are huge barriers to entry in a perfectly competitive market, while there are no barriers to entry in a monopoly. B) The sellers in a perfectly competitive market are price makers, while a seller in a monopoly market is a price taker. C) The equilibrium price in a perfectly competitive market exceeds marginal revenue, while the equilibrium price in a monopoly equals marginal revenue. D) The market demand curve faced by a perfectly competitive firm is horizontal, while the market demand curve in a monopoly is downward-sloping.
Refer to Figure 16-5. Suppose the firm represented in the diagram decides to practice perfect price discrimination. What is the total revenue collected by the firm?
A) $6,720 B) $7,680 C) $10,240 D) $13,440
If the production of oranges reduces global warming, then the equilibrium quantity of oranges will be ________ the socially optimal quantity.
A. lower than B. equal to C. more valuable than D. higher than
Compensating differences in wages:
A. compensate workers for differences in their human capital. B. are wage differences that compensate for differences in the desirability of jobs. C. describe the tendency for the wages of all occupations to adjust to the median level. D. do not exist if jobs have different nonmonetary characteristics.