Author Question: The lower the exchange rate today, ceteris paribus, the A) greater is the expected profit from ... (Read 86 times)

cagreen833 · **on:** Jun 29, 2018

The lower the exchange rate today, ceteris paribus, the

A) greater is the expected profit from buying U.S. dollars today and holding them.
B) smaller is the expected profit from buying U.S. dollars today and holding them.
C) greater is the expected profit from buying foreign currency today and holding it.
D) smaller the quantity of U.S. dollars demanded in the foreign exchange market today.

Question 2

The definition of M2 includes

I. M1.
II. money market mutual funds.
III. currency held outside of banks.
A) I and II only
B) I and III only
C) II and III only
D) I, II, and III