How does speculation in currencies affect the value of a nation’s currency?
What will be an ideal response?
If speculators believe that the value of a currency will depreciate in the future (for whatever reason), then they will attempt to convert that currency to another. This will cause an increase in the supply of the currency, which will cause it to depreciate without an offsetting increase in demand. Thus, in effect, the speculators help to cause what they predict.
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Allowing bank branching across state lines gives banks greater ability to coordinate bank operations. This makes it easier for them to receive the benefits of
A) the dual banking system. B) economies of scale. C) disintermediation. D) interest-rate irregularities.
In terms of the numbers of firms in the U.S. economy, the most common type of firm is the
a. corporation b. partnership c. sole proprietorship d. nonprofit organization e. limited partnership corporation
Demand is defined as
A. the quantity people would buy at a given price. B. the quantity needed by an individual during a given time. C. the amount of a good actually purchased during a given time. D. the quantities that buyers will purchase at different prices.
The data below describe the economy of Econland:Business and household saving58Government transfers and interest payments12Government purchases of goods and services25Tax collections42Public saving in Econland equals:
A. 5 B. -5 C. 17 D. 16