As a country begins to liberalize its capital account, what would you expect to happen to the difference between the interest rates for similar assets in this country and another country with open capital markets?
A) get larger
B) get smaller
C) stay the same
D) it depends on the existing exchange rate.
E) exponential divergence
B
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The short-run market supply curve is the ______ of the individual firms’ supply curves in the market.
a. vertical analysis b. horizontal analysis c. vertical summation d. horizontal summation
Which of the following conditions is not required for price discrimination?
A. Buyers with different elasticities must be physically separate from each other. B. The good or service cannot be profitably resold by original buyers. C. The seller must be able to segment the market, that is, to distinguish buyers with different elasticities of demand. D. The seller must possess some degree of monopoly power.
A major economic
A) benefit of fixed exchange rates is that they simplify economic calculations and provide a more predictable basis for decisions that involve international transactions than do floating rates. B) benefit of floating exchange rates it that they simplify economic calculations and provide a more predictable basis for decisions that involve international transactions than do fixed rates. C) cost of fixed exchange rates it that they simplify economic calculations and provide a more predictable basis for decisions that involve international transactions than do currency board rates. D) benefit of flexible exchange rates it that they simplify economic calculations and provide a more predictable basis for decisions that involve international transactions than do crawling peg rates. E) benefit of fixed exchange rates is that the value of goods will remain constant across a large region of consumers.
Which of the following would be an asset on a consolidated balance sheet for a commercial bank?
a. Checkable deposits b. Time and savings deposits c. Reserves held on deposit at the Federal Reserve d. Borrowing from the Federal Reserve