Your textbook refers to a "basket" of currencies. What is it?
a. a random selection of currencies
b. currencies that are low-valued and unstable
c. currencies that represent the average increase in value for all currencies
d. currencies most used by the nation in its trade and other transactions, weighted by their importance
Ans: d. currencies most used by the nation in its trade and other transactions, weighted by their importance
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When the price level rises
a) firms will spend less on new business buildings and business equipment and households will want to spend less building new homes. b) the interest rate falls because people will want to hold more money and so sell bonds. c) the interest falls because people will want to hold less money and so buy more bonds. d) firms will spend more on new business buildings and business equipment and households will want to spend more on building new homes.
A $500 government bond is a money-fixed asset
a. True b. False Indicate whether the statement is true or false