Since Britain withdrew from the ERM in 1992, what has it done with regard to fixing its exchange rates?
A) Britain has joined with the euro, forgoing its long-standing independence.
B) Britain has put the pound back on solid footing by backing it with gold.
C) Britain has retained its independent pound currency and not joined the currency union of Europe.
D) Britain has abandoned its own monetary authority for the certainty of fixed exchange rates with its largest trading partners.
Ans: C) Britain has retained its independent pound currency and not joined the currency union of Europe.
You might also like to view...
If the Fed buys government securities from commercial banks in the open market ________.
A. commercial banks give the securities to the Fed, and the Fed decreases the banks' reserves B. the Fed gives the securities to the commercial banks and decreases the banks' reserves C. commercial banks give the securities to the Fed, and the Fed increases the banks' reserves D. the Fed gives the securities to the commercial banks and increases the banks' reserves
Suppose a bank has $100,000 in checking account deposits with no excess reserves and the required reserve ratio is 5 percent. If the Federal Reserve lowers the required reserve ratio to 3 percent, then the bank will now have excess reserves of
A) $0. B) $2,000. C) $3,000. D) $5,000.
The winner of a sealed-bid first-price auction is the participant who bid the ________ and pays the amount of the ________.
A) highest; second-highest bid B) highest; bid C) second-highest; bid D) second-highest; second-highest bid
Why do wage increases along with increases of other input prices impact the short-run aggregate supply but not the long-run aggregate supply, unless they reflect permanent reductions in the supply of those inputs?