A citizen in a developing country with a currency policy of convertibility on the current account could engage in all of the following transactions except:
A. sell foreign currency resulting from the exports of manufactured t-shirts.
B. sell foreign currency resulting from the sale of a U.S. treasury bond.
C. purchase foreign currency in order to import a BMW.
D. purchase foreign currency in order to purchase a U.S. treasury bond.
Answer: D
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Assuming the market is in equilibrium in the graph shown with demand D and supply S2 at a quantity of 8, consumer surplus is:
A. $32.
B. $11.
C. $7.
D. equal to the producer surplus.
The degree of wage stickiness in the real world:
A. is controversial, even among economists. B. is agreed upon by economists as a concept, but controversial in how it's measured. C. is agreed upon by economists, but not accepted by others, like policymakers. D. has been estimated by economists.
In efficient markets, ________ flows toward ________ opportunities.
A. investment capital; profit B. consumption; profit C. investment capital; consumption D. consumption; investment
If the producers bear a smaller tax incidence than the buyers in a market, which of the following must be true?
A. It must be a market for inferior goods. B. It must be a market for luxury items. C. Their supply curve must be more elastic than the buyers demand curve in this market. D. Their supply curve must be less elastic than the buyers demand curve in this market.