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Author Question: Which account of the balance of payments is most likely to be directly affected when the country ... (Read 43 times)

RYAN BANYAN

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on: Jun 30, 2018
Which account of the balance of payments is most likely to be directly affected when the country decides to fix its exchange rate?
 a. Current international transactions
  b. Net nonreserve-related international borrowing/lending
  c. Official reserve-related (central bank) transactions
  d. None.

Question 2

The medium of exchange function of money means it is the:
 a. The unit in terms of which people write contracts.
  b. Barter value of a product for which a nation has a comparative advantage.
  c. Unit in terms of which everything is valued and the basis for establishing relative prices between goods and services.
  d. Asset individuals get for goods and services and then use later to purchase other goods and services.
  e. Asset people can use to accumulate wealth.


leahchrapun

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Reply #1 on: Jun 30, 2018
Answer to Question 1

.C

Answer to Question 2

.D


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