The possibility that changes in the value of a nation's currency will result in variations in the market value of a business's assets is referred to as
A) hedge risk.
B) foreign exchange risk.
C) conversion risk.
D) transaction risk.
B
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The best example of a frictionally unemployed worker is one who: a. has been looking for work for 27 weeks or longer
b. is laid off during a recessionary period in the economy. c. is in the process of voluntarily switching jobs. d. is discouraged and not actively seeking work. e. cannot find a job that matches with his skills.
A larger controversy of the financial crisis among both members of Congress and the general public had to do with the Fed's expanded role in the economy
a. True b. False
If we were to examine the economic record of the former Soviet Union and China during the 1980s, we could reasonably conclude that
A. China was successful and the Soviet Union was not. B. The Soviet Union was successful and China was not. C. Both the Soviet Union and China were successful. D. Neither China nor the Soviet Union were successful.
Suppose that the labor market for life guards is initially in equilibrium. Whistles are an important safety tool that life guards use as a part of their jobs. A fire destroys the largest factory that produces whistles. In the market for life guards the equilibrium wage
a. increases because the marginal productivity of life guards increases. b. decreases because the marginal productivity of life guards decreases. c. increases because the supply of life guards increases. d. decreases because the supply of life guards decreases.