Author Question: When a nation's currency depreciates, the country might A) have an inflation rate that exceeds ... (Read 105 times)

formula1 · **on:** Jun 29, 2018

When a nation's currency depreciates, the country might

A) have an inflation rate that exceeds the inflation rate in nations with which it trades.
B) have an inflation rate below the inflation rate in nations with which it trades.
C) be responding to an increase in the demand for its currency.
D) be responding to a decrease in the domestic demand for foreign currencies.

Question 2

The minimum percentage of deposits that a depository institution must hold and cannot use for lending is known as the

A) minimum rate.
B) required reserve ratio.
C) money multiplier.
D) discount rate.