U.S. residents come to believe that the dollar will depreciate in the future, that is, the exchange rate in the future will be lower than the current exchange rate. As a result
A) the demand curve for dollars shifts rightward.
B) the demand curve for dollars shifts leftward.
C) there is a movement upward along the demand curve for dollars.
D) None of the above answers are correct.
Question 2
Cash assets of a commercial bank consist of
A) notes and coins in the bank's vault, a deposit account at the Fed and loans to other banks.
B) notes and coins in the bank's vault , a deposit account at the Fed and any gold held for the bank at Fort Knox.
C) vault cash, a deposit account at the Fed and the bank's stock holdings.
D) vault cash, a deposit account at the Fed and the value of its depositors' accounts.
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