Which aspect creates the daily changes in a country’s exchange rate? a. Currency supply and demand...
Which aspect creates the daily changes in a country’s exchange rate? a. Currency supply and demand b. Level of domestic output c. Balance of payments d. Domestic employment level
Homework Answers
The question can be answered inn two ways either by directly logic or by elimination of the wrong ones.
When we talk about the change in exchange rates all the given factors are responsible for it but in the fact of daily change we have to notice the factors.
The level of domestic output, is a aggregate which is measured may be annually, quarterly but not daily same way balance of payments is measured annually and domestic employment level are the graphs showing employment status of a country which does not directly effect the foreign exchange rates
So, The supply and demand of currency can be the only factor which can affect the daily prices of foreign currencies.
Add Answer to:
Which aspect creates the daily changes in a country’s exchange
rate? a. Currency supply and demand...
2. Foreign exchange rate quotations An exchange rate is the price of one country’s currency expressed...
2. Foreign exchange rate quotations An exchange rate is the price of one country’s currency expressed in another country’s currency. The exchange rates of the euro (€ ) and the Japanese yen (¥) relative to the U.S. dollar ($) are listed as follows: Spot Rate Euro € 0.6589 / $1 Yen ¥ 105.7800 / $1 When exchange rates are stated in 1.(European/American) terms, the foreign exchange rate represents the number of American dollars that can be purchased with one...
on the foreign exchange market, an increase in a country’s exchange rate A. Decrease the quantity...
on the foreign exchange market, an increase in a country’s exchange rate A. Decrease the quantity demand of its currency B. Increase the quantity demand of its currency C. Has no effect on the quantity demand of its currency D. Decrease the quantity supplied of its currency E. has no effect of the quantity supplied of its currency Please Help asap! Thank you!
1.Appreciation of the domestic currency will a. increase domestic aggregate demand. b. decrease domestic aggregate supply....
1.Appreciation of the domestic currency will a. increase domestic aggregate demand. b. decrease domestic aggregate supply. c. decrease domestic aggregate demand, and possibly increase domestic aggregate supply. d. cause a deterioration in the trade balance, but have no effect on aggregate supply or demand. 2.In the current exchange rate arrangements of IMF members, a. a substantial number of countries do not have a freely floating exchange rate. b. the European Union countries fix their exchange rates against the US dollar....
The exchange rate for a foreign currency that is determined by supply and demand is Group...
The exchange rate for a foreign currency that is determined by supply and demand is Group of answer choices a constrained exchange rate. a floating exchange rate. a fixed exchange rate. a controlled exchange rate.
The import demand curve determines the ____ in the same way that the export supply curve...
The import demand curve determines the ____ in the same way that the export supply curve determines the _____ a. supply of foreign exchange, demand for foreign exchange b. supply of domestic currency; demand for domestic currency c. demand of foreign exchange; supply for foreign exchange d. demand of domestic currency; supply for domestic currency
Demand for a country's currency in the foreign exchange market is given by where XR is...
Demand for a country's currency in the foreign exchange market is given by where XR is the US dollar price of the currency, and A is the quantity of the currency. Supply for Country A's currency in the foreign exchange market is given by The central bank of the country fixes the exchange rate at 62 USD. The central bank needs to sell A = ________ in the foreign exchange market to maintain the fixed exchange rate. [Fill in the...
1. If a fixed exchange rate is set below the equilibrium rate in a fixed exchange...
1. If a fixed exchange rate is set below the equilibrium rate in a fixed exchange rate system it will create a deficit in the balance of payments. a surplus in the balance of payments. inflation. deflation. 2. Which of the following items is not a flow? A.Unilateral transfers. B. The increase in foreign assets held by Australian investors over a period of six months. C. Foreign exchange reserves lost by the Reserve Bank as a result of intervention in...
1. What is the short-run effect on the exchange rate of an increase in domestic real...
1. What is the short-run effect on the exchange rate of an increase in domestic real GNP, given expectations about future exchange rates? A.Money demand increases, the domestic interest rate increases, and the domestic currency depreciates. B.Money demand increases, the domestic interest rate increases, and the domestic currency appreciates. C.Money demand decreases, the domestic interest rate decreases, and the domestic currency appreciates. D.Money demand decreases, the domestic interest rate decreases, and the domestic currency depreciates. 2. In our discussion of...
The sum of currency and bank deposits at the central bank is called: a. the money...
The sum of currency and bank deposits at the central bank is called: a. the money supply. b. domestic assets. c. the monetary base. d. fractional reserves. Official intervention in the foreign exchange market to defend a fixed exchange rate when the value of the country's currency is under downward pressure causes a. international reserve holdings to rise. b. a downward pressure on the country's interest rates. c.an increase in the liabilities of the central bank. d. the domestic money...
An increase in the money supply in a flexible exchange rate regime will cause: Select one:...
An increase in the money supply in a flexible exchange rate regime will cause: Select one: a. an increase in the exchange rate. b. no change in the exchange rate. c. a depreciation of the domestic currency. d. a shift of the IP curve.
The sum of currency and bank deposits at the central bank is called: a. the money supply. b. domestic assets. c. the monetary base. d. fractional reserves. Official intervention in the foreign exchange market to defend a fixed exchange rate when the value of the country's currency is under downward pressure causes a. international reserve holdings to rise. b. a downward pressure on the country's interest rates. c.an increase in the liabilities of the central bank. d. the domestic money...
Most questions answered within 3 hours.
-
find the critical value associated with a right sided hypothesis of
the mean using a sample...
asked 1 hour ago -
Which of the following statements is true with respect to a
simple linear regression model?
a....
asked 2 hours ago -
The energy required to remove an electron from a surface of a
solid element is called...
asked 3 hours ago -
How would you train your employees to avoid risks of using
mobile devices?
asked 4 hours ago -
Assume Kw = 1.01 ✕ 10−14
For pure water, we can calculate [H3O+ ] = [OH...
asked 5 hours ago -
Suppose that on a temperature scale X, water boils at 203.0°X
and freezes at -105.7°X. What...
asked 6 hours ago -
BaS crystallizes in a cubic unit cell with S2- ions on each
corner and each face....
asked 6 hours ago -
A. 0≤P(Oi)≤10≤P(Oi)≤1 for each i
B. P(Oi)≤0P(Oi)≤0
C. P(Oi)=1+P(OCi)P(Oi)=1+P(OiC)
D. P(Oi)≥1P(Oi)≥1
If an experiment consists of...
asked 8 hours ago -
A battery has an emf of 9.20V and an internal resistance of 1.20
ohm. a)What resistance...
asked 8 hours ago -
The area of an elastic circular loop decreases at a constant
rate, dA/dt = −6.60×10−3 m2/s...
asked 9 hours ago -
The denaturation of proteins can be described by the
equilibrium
F⇌U
where F and U represent...
asked 10 hours ago -
Please answer what the maximum and minimum force is, and the
angle on the ion is...
asked 10 hours ago