When the exchange rate, E, and the foreign price level, P, is ...

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When the exchange rate, E, and the foreign price level, P, is fixed, domestic inflation depends primarily on
 
  A) amount of aggregate demand.
  B) home price level set by IMF.
  C) current account balance.
  D) government tax policy.
  E) foreign interest rates.

Question 2

The purpose of the Basel Committee was to
 
  A) achieve a better coordination of the surveillance exercised by national authorities over the international banking system.
  B) achieve a better coordination of domestic banking systems.
  C) achieve a better coordination between brokers and investment bankers.
  D) achieve a better coordination between bond holder and bon issuers.
  E) manipulate bank rates for more leverage profits.

[brbarasa]

Answer to Question 1

A

Answer to Question 2

A

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TYSM

[covalentbond]

Excellent