Exchange rates that are allowed to fluctuate in response to changes in supply and demand is known as
A. fixed exchange rates.
B. standard drawing rights.
C. the foreign exchange markets.
D. flexible exchange rates.
Answer: D
You might also like to view...
A small business owner has a line of credit from a bank with a nominal interest rate of seven percent
For several years, the price level has been rising at an annual rate of two percent, but the owner has just read in the newspaper that economists expect next year's inflation rate to be four percent or more. Assume that this owner may either continue the line of credit at seven percent, or renegotiate to alter both the size of the credit and the interest rate. What reason might there be for the owner to keep the credit terms as is? What argument might justify changing the credit agreement?
A supply of foreign exchange occurs in the United States when
a. a U.S. citizen wants sells stock on a European stock exchange. b. the United States exports steel to Japan. c. United States citizens travel abroad. d. All of the above
The total money supply is largely determined by
A) open market operations. B) changes in the reserve requirement. C) the lending behavior of commercial banks. D) the deficit policy of the Treasury.
The largest income redistribution programs:
a. are funded solely by highly progressive taxation b. pay benefits mainly to those below the poverty line c. both of the above d. neither of the above