Nondeliverable forward exchange markets in centers such as Hong Kong and Singapore help to circumvent which problem?
A) loss of goods shipped from Hong Kong and Singapore
B) inconvertible currencies cannot be traded in foreign markets
C) lag between the spot exchange date and the value date
D) high travel costs from Asia to "traditional" foreign exchange markets
E) unstable currencies that hold no purchasing power
B
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Which of the following statements is TRUE about a vehicle currency?
A) It is widely used to denominate contracts made by parties who reside in the country that issues the vehicle currency. B) The dollar is sometimes called a vehicle currency because of its pivotal role in many foreign exchange deals. C) There is much skepticism that the euro will ever evolve into a vehicle currency on par with the dollar. D) The pound sterling, once second only to the dollar as a key international currency, is beginning to rise in importance. E) Vehicle currencies include nondeliverable currencies like the renminbi.
Xavier’s country has 1 million acres of land it uses in farming. In contrast, Dominic’s country has 100 million acres of farmland. If each country uses irrigation techniques to add 100,000 acres of farmland, how will productivity in each country be impacted?
a. Neither Xavier’s nor Dominic’s country will experience an increase in productivity. b. Both Xavier’s and Dominic’s countries will experience a small increase in productivity. c. Dominic’s country will experience a relatively large increase in productivity, while Xavier’s country will experience a relatively small increase in productivity. d. Xavier’s country will experience a relatively large increase in productivity, while Dominic’s country will experience a relatively small increase in productivity.
Savings and money market accounts are not included in:
A. M1. B. M2. C. M3. D. L.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, an increase in unemployment may be represented by the movement from
A. B to A. B. A to C. C. C to D. D. B to D.