One of the reasons the pound depreciated in 1992 was:
A) because Britain was running out of stock of foreign currency reserves.
B) because Britain started exporting more than it imported
C) because Britain started importing more than it exported.
D) because speculative trading had decreased in foreign exchange markets.
A
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A reverse repurchase agreement will accomplish all of the following to banks and other financial intermediaries EXCEPT:
A. discourage investment elsewhere. B. ensure their solvency. C. give them a higher rate of return on T-Bill holdings. D. drain them of liquid cash.
Which of the following is correct concerning recessions?
a. They come at fairly regular and predictable intervals. b. They are associated with comparatively large increases in investment spending. c. They are any period when real GDP growth is less than average. d. They tend to be associated with rising unemployment rates.