The foreign exchange market is
A. the increase in the exchange value of one nation's currency in terms of an other nation.
B. a market in which exchange rates are allowed to fluctuate in the open market in response to changes in supply and demand.
C. the decrease in the exchange value of one nation's currency in terms of another nation.
D. a market in which households, firms, and governments buy and sell national currencies.
Answer: D
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The goals of bank asset management include
A) maximizing risk. B) minimizing liquidity. C) lending at high interest rates regardless of risk. D) purchasing securities with high returns and low risk.
Other things equal, which of the following is true?
a. A reduction in prices will increase the real wealth of those holding a fixed quantity of money. b. A reduction in prices will lead to a decline in net exports. c. A reduction in prices will increase the scarcity of money, raise the real interest rate, and, thereby, encourage investment and consumption. d. A reduction in prices will increase profit margins and, thereby, stimulate additional investment.
Imperfect competition means that
What will be an ideal response?
Barriers to entry:
A. can result from government regulation. B. usually result in pure competition. C. exist in economic theory but not in the real world. D. are typically the result of wrongdoing on the part of a firm.