An increase in the value of a domestic currency in terms of other currencies is known as
A) an appreciation.
B) a depreciation.
C) a flexible exchange rate.
D) a term not given in the above answers.
A
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The market demand curve
A. and the individual demand curve are synonymous. B. is calculated by multiplying the number of consumers by the individual demand curve. C. shows how the total quantity demanded of some good changes as price changes, other things held constant. D. can be calculated even if individual demand curves are unknown.
If at the current level of product-specific service, consumers' value at $60 and the cost of retailers to provide the services is $60, which of the following is true?
A) the profit-maximizing level of profit-maximizing services is less than the current level B) the profit-maximizing level of profit-maximizing services is greater than the current level C) the profit-maximizing level of profit-maximizing services is exactly double the current level D) the profit-maximizing amount of product-specific services is being offered.
Suppose the 12-month interest rate on a U.S. Treasury bill is 16 percent, and the one-year interest rate on a comparable British Treasury bill is 6 percent. The exchange rate today is $2.00 per pound. What must be the expected exchange rate at maturity for interest rate parity to hold?
a. $1.00 = 0.50 pound b. $1.00 = 0.75 pound c. 1 pound = $2.20 d. 1 pound = $1.80 e. 1 pound = $2.50
If a bank has excess reserves,
a. its reserves are greater than its liabilities. b. it can make a loan if it wishes. c. it cannot make a loan if it wishes. d. it must borrow from the Fed.