Normally, exchange rates are expressed as:
a. the number of units of the currency per one ounce of gold.
b. the GDP of one nation as a percentage of the GDP of the other.
c. the price of one unit of foreign currency expressed in terms of the domestic currency.
d. ratios of the value of one nation's wealth compared to the other.
Ans: c. the price of one unit of foreign currency expressed in terms of the domestic currency.
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As it relates to corporations, the principal-agent problem is that:
A. the goals of the corporate managers (the principals) may not match the goals of the corporate owners (the agents). B. the goals of the corporate managers (the agents) may not match the goals of the corporate owners (the principals). C. the federal government (the agent) taxes both corporate profits and the dividends paid to stockholders (the principals). D. it is costly for the corporate owners (the principals) to obtain a corporate charter from government (the agent).