Floating exchange rates

A. float according to the laws of supply and demand.
B. are fixed by speculators in foreign exchange markets.
C. are rarely used in foreign exchange transactions.
D. All of the choices are true characteristics.


A. float according to the laws of supply and demand.

Economics

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In June 2008, $1 bought 104 yen and in October, $1 bought 93 yen. This change means

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Economics

Suppose that the federal funds rate and the discount rate are equal initially at 3%. If the discount rate is then lowered to 2.5%, to whom will a bank be more likely to go for a loan: the Federal Reserve or another bank? Explain your answer in detail, and be sure to mention the impact that this situation would have on the money supply

Economics

Constraints

What will be an ideal response?

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What is a surplus? What is a shortage?

What will be an ideal response?

Economics