Answer the following statement(s) true (T) or false (F)
1. Present-day fluctuations in exchange rates are determined solely by market forces.
2. When exchange rates change, they affect not only the currency market but the product markets as well.
3. Since the advent of flexible exchange rates, world trade has expanded.
4. The most important advantage of the Bretton Woods fixed-rate system is that it has reduced the speculative rampages that were common under a flexible-rate system.
5. Booming futures markets in foreign currencies opened in Chicago, New York, and in foreign financial centers during the years that the world used the Bretton Woods system.
1. False
2. True
3. True
4. False
5. False
You might also like to view...
In the market for reserves, if the federal funds rate is between the discount rate and the interest rate paid on excess reserves, a ________ in the reserve requirement increases the demand for reserves, ________ the federal funds interest rate,
everything else held constant. A) rise; lowering B) decline; raising C) decline; lowering D) rise; raising
Refer to the above figure. Which of the above graphs represents an unequal income distribution?
A) Panel A B) Panel B C) Panel C D) Panel D