The currency premium in foreign-exchange markets
A) helps to offset anticipated declines in exchange rates.
B) helps to offset anticipated increases in exchange rates.
C) indicates investors' collective preference for financial instruments denominated in one currency relative to those denominated in another.
D) rises as domestic interest rates fall.
C
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If the market price is $40, the average revenue of selling five units is
A) $8. B) $20. C) $40. D) $200.
A hedge is
A) a financial strategy that reduces the change of suffering losses arising from foreign exchange risk. B) an exchange rate arrangement in which a country pegs the value of its currency to the exchange value. C) the possibility that changes in the value of a nation's currency will result in variations in the market value of assets. D) active management of a floating exchange rate on the part of a country's government.
The graph of a direct relationship will have a positive slope
a. True b. False Indicate whether the statement is true or false
For many pure public goods like fireworks displays, weather forecasts, and television broadcasts the marginal cost of serving one more consumer is ________, and the optimal quantity of the public good occurs when ________.
A. zero; provision is infinite. B. zero; the marginal benefit of the public good equals zero. C. greater than the average cost; the government provides the good. D. determined by average cost rather than marginal cost; price equals average cost.