Consider three imaginary countries. In Aire, saving amounts to $4,000 and consumption amounts to $12,000; in Bovina, saving amounts to $3,000 and consumption amounts to $24,000; and in Cartar, saving amounts to $10,000 and consumption amounts to $50,000 . The saving rate is
a. higher in Aire than in Cartar, and it is higher in Cartar than in Bovina.
b. higher in Cartar than in Aire, and it is higher in Aire than in Bovina.
c. higher in Cartar than in Bovina, and it is the same in Bovina and Aire.
d. higher in Aire than in Bovina, and it is the same in Aire and Cartar.
a
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A bank is said to have enough liquidity if:
A) it has enough funds to conduct its day-to-day businesses and meet the regulatory requirements. B) the value of its assets exceeds the value of its liabilities by at least $50,000. C) it operates for seven days a week for more than 12 hours a day. D) it holds deposits amounting to at least $100,000.
If the U.S. government enters the foreign exchange market and sells dollars to maintain a specific exchange rate with the yen, the dollar will ________ and the yen will ________
A) depreciate; depreciate B) depreciate; appreciate C) appreciate; depreciate D) appreciate; appreciate