Which of the following is true of foreign exchange markets?
A. Most foreign exchange trading involves the exchange of U.S. dollars for other currencies.
B. Individuals' exchanges of currencies comprise the largest portion of overall foreign exchange trading.
C. The laws of demand and supply are not applicable in a foreign exchange market.
D. The foreign exchange market is a single gathering place where traders shout buy-and-sell orders at each other.
Answer: A
You might also like to view...
Checking deposits are included in
A) M1 only. B) M2 only. C) M1 and M2. D) neither M1 nor M2.
Based on Table 9.1, if the information in the table is typical of current and financial account values over a long period, then it would be reasonable to infer that
A) the net international investment position is negative. B) the net international investment position is positive. C) national savings are less than domestic investment. D) government accounts are in deficit. E) the current account balance is greater than domestic investment.
The marginal physical product of labor for the most recent worker hired by a company is 100. If this company were to hire an additional worker we would expect the marginal physical product of labor to
A. be above 100 by a small amount. B. be below 100. C. remain at 100. D. be infinity.
An effect of international trade is
A. that the United States has a trade surplus. B. that only countries that have absolute advantage in producing a good can participate. C. the transmission of ideas around the world. D. the increase in the average price of goods as the cost of transportation has to be included.