Author Question: The balance of payments improves A) when there is an exchange rate appreciation. B) when there ... (Read 103 times)

hbsimmons88

  • Hero Member
  • *****
  • Posts: 526
The balance of payments improves
 
  A) when there is an exchange rate appreciation.
  B) when there is an exchange rate depreciation.
  C) when the interest rate rises.
  D) never.

Question 2

Suppose you have a collection of gold coins from the 19th century. Comment on their suitability to provide for you each of the three functions of money.
 
  What will be an ideal response?



pami445

  • Sr. Member
  • ****
  • Posts: 303
Answer to Question 1

D

Answer to Question 2

The coins are an exceptional store of value. They would serve well as a medium of exchange, eagerly accepted by most people. They are a poor unit of account, since their value fluctuates a great deal relative to other goods. The face value of the coins is not a reliable indicator of their worth relative to other goods. This is because they are valued primarily as a store of value (and historical/artistic artifacts), rather than as a medium of exchange.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Oxytocin is recommended only for pregnancies that have a medical reason for inducing labor (such as eclampsia) and is not recommended for elective procedures or for making the birthing process more convenient.

Did you know?

Dogs have been used in studies to detect various cancers in human subjects. They have been trained to sniff breath samples from humans that were collected by having them breathe into special tubes. These people included 55 lung cancer patients, 31 breast cancer patients, and 83 cancer-free patients. The dogs detected 54 of the 55 lung cancer patients as having cancer, detected 28 of the 31 breast cancer patients, and gave only three false-positive results (detecting cancer in people who didn't have it).

Did you know?

The familiar sounds of your heart are made by the heart's valves as they open and close.

Did you know?

Multiple experimental evidences have confirmed that at the molecular level, cancer is caused by lesions in cellular DNA.

Did you know?

To combat osteoporosis, changes in lifestyle and diet are recommended. At-risk patients should include 1,200 to 1,500 mg of calcium daily either via dietary means or with supplements.

For a complete list of videos, visit our video library