If the U.S. government enters the foreign exchange market and sells dollars to attain a specific exchange rate with the yen, the dollar will ________ and the yen will ________.
A. depreciate; depreciate
B. depreciate; appreciate
C. appreciate; depreciate
D. appreciate; appreciate
Answer: B
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Use the following graph to answer the next question.
Which of the following factors will shift AD1 to AD3?
A. A decrease in consumer wealth B. An increase in expected returns on investment C. A decrease in real interest rates D. An increase in productivity
The way we know what commodities are relatively scarce or abundant is through
A) transaction costs. B) prices. C) price ceilings. D) price floors.
Deciding which exchange rate should be used in the presentation of financial statements
A) is a rather straight forward decision. B) is called exchange rate risk. C) is called market-based exposure. D) is called balance sheet exposure.
Until 1863, National Banking was a mix of licensing by state charters, banking done by nonchartered private bankers, and free banking
Indicate whether the statement is true or false