A decline in the exchange rate means that
a. the price of foreign exchange has declined.
b. foreign currency has appreciated while the dollar has depreciated.
c. foreign currency has depreciated while the dollar has appreciated.
d. either a or c
D
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When the Federal Reserve engages in a repurchase agreement to offset a withdrawal of Treasury funds from the Federal Reserve, the open market operation is said to be
A) defensive. B) offensive. C) dynamic. D) reactionary.
IBM buys treasury bonds from the UK as part of its investment portfolio. This is an example of:
A. foreign direct investment. B. foreign portfolio investment. C. importing. D. exporting.
All of the following are examples of government purchases except
a. F-15 fighter planes b. food and clothing for the armed forces c. interstate highways d. post offices e. the Washington D.C. residence of Illinois Senator Richard Durbin
Which of the following events would shift money demand to the left?
a. an increase in the price level b. a decrease in the price level c. an increase in the interest rate d. a decrease in the interest rate