Why do country’s banks hold foreign money and gold reserves? regards
Posts Tagged Exchange
Which Of The Following Statements About Exchange Rate Markets Is True?
a. an increase in U.S. income will cause a decrease in the supply of dollars and a decrease in the demand for foreign currencies.
b. higher U.S. real ineterest rates relative to other nations will increase the supply of dollars. c. if the price level in the U.S. falls relative to the price level in foreign nations, U.S. exports will increase and imports decrease, causing the demand for dollars to rise and the supply of dollars to fail.
d. it is easy to correctly estimate the long run equilibrium exchange rate.