The market in which the currency of one country is traded for the currency of another country is called
A. the futures market.
B. the commodities market.
C. the foreign exchange market.
D. the international trade market.
C. the foreign exchange market.
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As a general rule, an increase in the capital available to a society
A. reduces the slope of the production possibilities frontier, making it shallower. B. increases the slope of the production possibilities frontier, making it steeper. C. shifts the production possibilities frontier outward, away from the origin. D. shifts the production possibilities frontier inward, toward the origin. E. makes the production possibilities frontier more bowed out.
If the reserve requirement was 15% and a bank customer makes a deposit of $500, the initial result would be:
a. a $75 increase in required reserves and a $425 increase in excess reserves. b. a $425 increase in required reserves and a $75 increase in excess reserves. c. a $75 increase in required reserves and a $3,333 increase in excess reserves. d. a $3,333 increase in required reserves and a $425 increase in excess reserves.
When inflation turns out to be different from what was expected, purchasing power is ________.
A. decreased B. redistributed C. destroyed D. increased
An increase in the money supply is likely to decrease:
a. Prices b. Nominal income c. Money demand d. Interest rates