A. why exchange rates remain quite stable
B. why governments change their money supplies
C. long term exchange rate movements
D. short term exchange rate movements
Related Mcqs:
- Suppose, due to political instability, Russians suddenly choose to purchase UK assets as opposed to Russian assets Which of the following statements is true regarding the value of the pound and UK net exports ?
A. The pound appreciates, and UK net exports rise
B. The pound appreciates, and UK net exports fall
C. The pound depreciates, and UK net exports rise
D. The pound depreciates, and UK net exports fall - Suppose, due to political instability, Russians suddenly choose to invest in UK assets as opposed to Russian assets Which of the following statements is true regarding UK net foreign investment ?
A. UK net foreign investment is unchanged because only UK residents can after UK net foreign investment
B. UK net foreign investment rises
C. UK net foreign investment falls
D. None of the above - Real business cycle theory suggests that ____ not important in explaining short-term fluctuations around actual output ?
A. aggregate supply is
B. aggregate demand is
C. potential output is
D. real variables are - There is a decentralized market where geographically dispersed dealers are linked by telephones and computer screens. The market is for securities not listed on a stock or bond exchange. Name the market ?
A. Grey market
B. Over-the counter (OTC)
C. Open market
D. Back market - If a producer has market power (can influence the price of the product in the market) then free market solutions ?
A. are equitable.
B. are efficient
C. maximize consumer surplus
D. are inefficient - If all firms in a market have identical cost structures and if inputs used in the production of the good in that market are readily available, then the long-run market supply curve for that good should be ?
A. downward sloping
B. perfectly inelastic
C. upward sloping
D. perfectly elastic - The asset market approach views exchange rates as being determined mainly by ?
A. the use of import tariffs and quotas by governments
B. the current account balance of each country
C. the relative growth rate of national output between countries
D. efforts of investors to balance their portfolios among financial assets denominated in different currencies - According to the asset market approach increased investor confidence in the Mexican economy would cause the peso to ?
A. appreciate because of an increase supply of peso denominated assets
B. depreciate because of an increased supply of peso denominated assets
C. appreciated because of an increased demand for peso denominated assets
D. depreciated because of an increased demand for peso denominated assets - What is called the excess of purchase price over fair market value of net assets that are acquired under the purchase method of accounting ?
A. Bonus
B. Up level
C. Goodwill
D. Upgradation - When one firm in the breakfast cereal market started an advertising campaign that stressed the nutritional value of its cereals, all other cereal manufacturers started similar advertising campaign This suggests that the breakfast cereal market is ?
A. monopolistically competitive
B. oligopolistic
C. perfectly competitive
D. indeterminate from this information
