Which of the following is true of foreign exchange markets?
A. Most foreign exchange trading involves the exchange of U.S. dollars for other currencies.
B. Individuals' exchanges of currencies comprise the largest portion of overall foreign exchange trading.
C. The laws of demand and supply are not applicable in a foreign exchange market.
D. The foreign exchange market is a single gathering place where traders shout buy-and-sell orders at each other.
Answer: A
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Which of the following is a characteristic of entrepreneurship?
a. the ability to navigate bodies of water b. it is produced using physical capital c. it is used up quickly in the production process d. it is a pre-existing resource like land e. it is associated with risk taking and innovation
The deposit-creation process can continue as long as
a. banks have required reserves b. banks have excess reserves c. the Fed sells bonds d. banks sell bonds to the public e. the required reserve ratio does not change