Generally, exchange rates are quoted as a single price of a unit of foreign currency rather than a ratio because:
a. the ratio of the units of home currency to units of foreign currency is always equal to one.
b. the denominator is always equal to one.
c. the price is fixed by the government.
d. the rate is adjustable in increments of 25 basis points.
Ans: b. the denominator is always equal to one.
You might also like to view...
The objective of supply-side economics is to _____________. The problem, said the supply-siders, was that ___________ were hurting the incentive to work and invest.
Fill in the blank(s) with the appropriate word(s).
Conglomerate mergers increase concentration in an industry
Indicate whether the statement is true or false
The decline in stock prices from 2000 through 2002
A) increased individuals' willingness to spend. B) had no effect on individual spending. C) reduced individuals' willingness to spend. D) increased individual wealth.
Of all financial intermediaries, which of the following holds the most assets?
A) hedge funds B) the federal government C) commercial banks D) corporations