A currency swap can
A) make foreign goods more expensive in the domestic market.
B) make the foreign exchange rate more volatile over time.
C) reduce foreign exchange risk.
D) make domestic goods more expensive in foreign countries.
C
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The exchange rate is volatile because
A) the demand curve and the supply curve are horizontal. B) when a relevant factor changes, demand and supply tend to change in opposite directions. C) the demand curve is vertical. D) the supply curve is vertical. E) when a relevant factor changes, demand and supply tend to change in the same direction.
If the value of your marginal product is 100 and you are being paid 80, which of the following is the most plausible reason that you remain with the firm?
A. You have no other options so you stay or go unemployed. B. You are altruistic and want to contribute to the firm's normal profit. C. You have no way of knowing the value of your marginal product so you feel OK about the salary of 80. D. You value the high rank and leadership role as well as the salary that your position offers.