A central bank holds foreign exchange reserves for:
A. safekeeping.
B. foreign exchange interventions.
C. diversification purposes.
D. diversification and safekeeping.
Answer: B
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Most economists believe that the aggregate supply curve is
A) upward-sloping in the short run, but vertical in the long run. B) upward-sloping in the long run, but vertical in the short run. C) upward-sloping in both the short run and in the long run. D) vertical in both the short run and in the long run.
Which of the following is not a role of the government in the economy?
a. Establishing and Enforcing the Rules of the Game. b. Limiting Competition c. Regulating Natural Monopolies d. None of the above are roles of the government in economic systems.
Real GDP is obtained by # randomize
A. Nominal GDP divided by GDP deflator. B. Nominal GDP multiplied by price level. C. Nominal GDP minus GDP deflator. D. Nominal GDP divided by CPI. 2) The standard of living is often measured by: # randomize A. Real GDP per capita B. Real GDP C. Real GDP multiplied by population D. Real GDP plus depreciation
By purchasing shares in a mutual fund that holds a portfolio of stocks, a person can
a. benefit from fundamental analysis, since the mutual fund requires its shareholders to perform fundamental analysis on their own. b. benefit from fundamental analysis, since the mutual fund hires one or more individuals to perform fundamental analysis for the fund. c. eliminate market risk. d. reduce the standard deviation of his or her portfolio to zero.