If the exchange rate between the U.S. dollar and the Mexican peso went from $1 US = 9 peso to $1 US = 10 peso, then
a. American goods have become less expensive for Mexicans.
b. Mexican goods have become more expensive for Americans.
c. American goods have become more expensive for Mexicans.
d. American exports to Mexico are likely to increase.
C
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Reasons why a corporation could choose to produce in another country include all of the following except
a. lower labor costs b. avoid overseas transportation costs c. limited liability d. circumvent tariffs e. lower resource costs
Which of the following is true of the function of the lender of last resort?
a. Large commercial banks provide loans at low rates of interest to small banks when the small banks are unable to meet the demands of the depositors. b. The central bank reduces the discount rate to facilitate borrowing by commercial banks from the central bank. c. Commercial banks provide loans to customers with bad credit ratings who are unable to get loans from any other sources. d. The central bank reinforces the effect of deposit insurance and reassures bank customers that they will not lose their money.