Financial capital is used to help finance
A) gross investment but not net investment.
B) net investment but not gross investment.
C) the purchase of physical capital by firms.
D) people's savings.
E) consumption expenditure by households.
Question 2
Exchange rate changes are
A) not very volatile because of offsetting changes in demand and supply.
B) very volatile because supply and demand changes reinforce each other.
C) infrequent because the exchange rate rarely changes.
D) not very volatile because of government intervention.
E) very volatile because of government intervention in the market.
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