Concerning the covering of exchange rate risks, assuming that a depreciation of the domestic currency is feared, one can say that there is an incentive for
A. monetary authorities to rush to cover their future needs.
B. importers to rush to cover their future needs.
C. both exporters and importers to rush to cover their future needs.
D. exporters to rush to cover their future needs.
Answer: B
You might also like to view...
The principle of comparative advantage
A. applies only when the gold standard is in effect. B. is the basic reason that the United States has been running trade deficits. C. states that it is advantageous to export more than you import. D. states that total output is greatest when each product is made by the country that has the lowest opportunity cost.
If a country has a net capital inflow, it is almost certainly experiences both capital inflows and capital outflows
a. True b. False Indicate whether the statement is true or false
If a monopoly is producing an amount of output level at which marginal revenue exceeds marginal cost, in order to increase its profit the monopoly will ________ its price and ________ its output
A) raise; decrease B) lower; increase C) lower; decrease D) raise; increase
If you look at the financial page listings for futures contracts and find that futures prices on Treasury bonds are falling over a particular time period, futures market investors must expect that
A) Treasury bond prices will be higher in the future. B) Treasury bond yields will be higher in the future. C) Treasury bond yields will be lower in the future. D) futures prices will rise again at the end of the period.