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Author Question: If assets are imperfect substitutes, then a decrease in the amount of domestic currency bonds held ... (Read 170 times)

Lisaclaire

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on: Jun 30, 2018
If assets are imperfect substitutes, then a decrease in the amount of domestic currency bonds held by the public will ________ the risk premium and ________ the amount of domestic currency bonds held by the central bank.
 
  A) decrease; leave unchanged
  B) increase; decrease
  C) increase; increase
  D) decrease; decrease
  E) leave unchanged; decrease

Question 2

Every international transaction automatically enters the balance of payments
 
  A) once either as a credit or as a debit.
  B) twice, once as a credit and once as a debit.
  C) once as a credit.
  D) twice, both times as debit.
  E) the times, once as a credit, onces as a debit, and once as an exchange.


dajones82

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

A

Answer to Question 2

B


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