Although foreign exchange market trades are said to involve the buying and selling of currencies, most trades involve the buying and selling of
A) bank deposits denominated in different currencies.
B) SDRs.
C) gold.
D) ECUs.
A
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Following a new deposit of $500, the loans of a commercial bank increase by $400. In this situation, the reserve ratio is most likely
A) 180 percent. B) 80 percent. C) 20 percent. D) 0 percent.
For a specific change in the yield to maturity
A) the shorter the time until a bond matures, the greater will be the change in its price. B) the longer the time until a bond matures, the greater will be the change in its price. C) the longer the time until a bond matures, the greater will be the change in its par value. D) the shorter the time until a bond matures, the greater will be the change in its coupon rate.
Which of the following characteristics is NOT likely to increase the interest on a loan?
A) a high-risk proposal B) a non-creditworthy borrower C) a short-term loan D) a larger dollar loan
Changes in the price of oil
a. can only lead to recessions. b. have not contributed much to output fluctuations in the United States. c. change the economy principally by changing aggregate demand. d. created both inflation and recession in the United States in the 1970s.