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QUESTION

21) if currency traders expect the dollar to depreciate. What will be the impact on demand and supply of dollars in the foreign exchange market?

21) if currency traders expect the dollar to depreciate. What will be the impact on demand and supply of dollars in the foreign exchange market?

A) Demand for the dollar will decline, and the supply of the dollar will increase.

B) Demand for the dollar will increase, and the supply of the dollar will decline.

C) Demand for the dollar will increase, and the supply of the dollar will increase.

D) Demand for the dollar will decline, and the supply of the dollar will decline.

22) Monetary policy refers to actions:

A) Central bank to manage money supply and interest rates to achieve macroeconomic policy objectives.

B) Head of State to manage government expenditure and taxes to achieve economic objectives.

C) Central Bank to manage government expenditure and taxes to achieve economic objectives.

D) Head of State to manage money supply and interest rates to achieve economic objectives.

24) Which of the following will encourage (encourage) the government to pursue an expansionary fiscal policy?

A) An increase in consumer spending.

B) Increase in net exports.

C) A decline in private investment spending.

D) Low oil prices.

25) Which of the following operations can be included in the country balance of payments financial account?

A) A Qatari buys an American car.

B) An American buys an American car.

C) A Qatari buys shares and bonds from the United States.

D) Remittances of Egyptians working in Qatar.

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