Explain how an increase or decrease in demand and supply will affect the value of a nation’s currency.
What will be an ideal response?
If the demand for a nation’s currency increases, other things equal, the currency of that nation will appreciate. Conversely, if the demand for a nation’s currency decreases, other things equal, the currency of that nation will depreciate.
If the supply of a nation’s currency decreases, other things equal, the currency of that nation will appreciate. Conversely, if the supply of a nation’s currency increases, other things equal, the currency of that nation will depreciate.
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________ gross domestic product is the value of ________ linked back to the prices of a single year
A) Real; total production B) Real; production possibilities C) Productivity; the consumer price index D) Nominal; total production
You decide to open a savings account, and you notice a sign in your bank that indicates deposits are FDIC insured. What protection does that give you?
(A) If the bank fails, your deposits are protected up to $250,000. (B) If you accidentally injure someone, they cannot claim any of the first $250,000 of your bank deposits as compensation. (C) Your deposits are guaranteed a certain rate of interest if you have at least $250,000 in the bank. (D) If you accidentally withdraw more money that you have in your account, you will not have to pay a penalty.