34) Foreign exchange reserves areA) Held illegally by many countries.B) Holdings of foreign exchange by official government agencies.C) Holdings of foreign exchange by individual citizens.D) Used by the Federal Reserve in open market operations.Show Transcribed Text46) Which of the following is true about income inequality?A) Inequality tends to be greatest in the poorest countries.B) Inequality is not an issue for developed countries.C) Inequality tends to get worse as a country develops.D) Inequality tends to diminish as the population increases.Show Transcribed Text47) Poverty is most likely to decrease whenA) Population increases regardless of what happens to economic growth.B) GDP increases regardless of what happens to population growth.C) Population growth exceeds economic growth.D) Economic growth exceeds population growth.

Foreign exchange reserves, frequently alluded to just as forex reserves or FX reserves, are assets…

34) Foreign exchange reserves are A) Held illegally by many countries. B) Holdings of foreign exchange by official government agencies. C) Holdings of foreign exchange by individual citizens. D) Used by the Federal Reserve in open market operations.

34) Foreign exchange reserves are A) Held illegally by many countries. B) Holdings of foreign exchange by official government agencies. C) Holdings of foreign exchange by individual citizens. D) Used by the Federal Reserve in open market operations.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: ssess the validity of the following statement: A country that manages its currency by intervening…

A: Government intervention: It refers to any type of dealing that government do or any intervention…

Q: A.Show Riqueza's central bank balance sheet, assuming there are no private banks. What is the…

A: Money supply refers to the total amount of money available in an economy at a given point in time.…

Q: Federal Reserve impact on inflation, growth and exchange rates: What happens to inflation, growth…

A: When the Federal reserve increases the interest rates on excess reserves, the impact is not only on…

Q: Which of the following groups would NOT participate in the foreign exchange market? Question 9…

A: The selling and purchase of foreign currencies take place on the foreign exchange market, which…

Q: Angelika's company is based in Germany and sells its products all over the world. Currently,…

A: Foreign exchange risk is very popular these days because there are lots of international…

Q: How does Balance of International Payment affect the financial system

A: The measure that depicts whether the country is producing enough economic output in order to pay for…

Q: Think of the U.S. as the domestic country and Great Britain (GB) as the foreign country. Let “e”…

A: Exchange rate determines the price of the currency of a domestic country when it is exchanged with…

Q: The Fed Group of answer choices issues deposits to the public. lends money to foreign governments.…

A: The FED is the primary organisation in charge of managing the nation's monetary policy through…

Q: 6) When United States residents acquire assets abroad, they are in essence A) borrowing money, and…

A: A buyer agrees to buy certain assets and liabilities in an asset purchase. This implies they only…

Q: 6) Which of the following transactions represents debit on the current account section of the US's…

A: Introduction The balance of payment is considered a country statement that includes all the…

Q: How countertrade can overcome currency control and exchange problem. Please provide Example(s) to…

A: Trade agreements are agreements between two or more countries to promote the free flow of…

Q: 1) When a country's currency is under speculative attack, it can defend the currency by a)raising…

A: Demand is the total quantity of products and services for which the consumers are ready to purchase…

Q: Q6. What types of reserves maintaining by SAOG and SAOC companies in Oman.

A: The joint stock company form is available to organizations intending to do business in Oman. There…

Q: Q3-13 If a country adopts a currency board arrangement, a result is that the country's money supply…

A: *Answer: If a country adopts a currency board arrangement, a result is that the country's money…

Q: ) True or False: Speculators have got substantial influence on second-generation

A: Excessive borrowing of government or consistent deficit in the balance of payments leads to the…

Q: A. An exporter in the U.S is planning to ship $10,000,000 worth of automobiles to Germany in 6…

A: A. Hedge: Hedging is a risk management strategy often used to balance losses in investment by making…

Q: hich of the following statements is true? OThe demand for foreign currency in the United States…

A: The answer is - The demand for foreign currency in United State increases as the volume of export…

Q: Deposits in European banks denominated in dollars for the purpose of international transactions are…

A: International transactions refer to any financial transaction or economic activity that involves…

Q: To answer the question just put an A, B, or C next to 1., 2.,3 ,..listed vertically. g.... A =…

A: Dear student, please note that as per the Bartleby answering guidelines, only the three question out…

Q: Compared to past results, the latest BIS Markets survey shows which of the following characteristics…

A: The trading in FX involves both derivatives and spot. While more than 50 currencies trading…

Q: 142.) Currency (C) = 800 Reserves (R) = 400 Deposits (D) = 1600 What is the value of the…

A: Currency-deposit ratio depends on the preferences of the house hold.

Q: Discuss currency of Russia country and its value against five major currencies (US Dollar, the…

A: Exchange rate shows the value of one currency in terms of other currency. The currency of Russia is…

Q: Which of the following is a factor influencing the reduction of Caribbean correspondent bank…

A: Banks global wide depends on correspondent banking to provide and access financial services to…

Q: a) Calculate the value of the country's goods and services balance, current account balance, and…

A: The trade agreements between cross borders that require foreign currency for trade are referred to…

Q: Consider two countries, Domestic and Foreign, in the short run. In the short run, suppose that…

A: Buying and selling of currencies in the foreign exchange market impacts the value of the currencies.…

Q: Explain the exchange-traded currency funds

A: Structure and Function Currency ETFs operate under a similar framework to other types of ETFs, but…

Q: Display graphically and explain a currency swap transaction.

A: Currency swap refers to a transaction in which two parties exchange an equivalent money amount with…

Q: The principal reason(s) that so much U.S. currency is held outside the U.S is (are). banks all…

A: The US dollar is world strongest currency and it is used export and imports purposes by the…

Q: Suppose that the Fed implements an expansionary monetary policy under the fixed exchange rate…

A: Fiscal and monetary strategies are the essential instruments legislatures use to direct the…

Q: Explain whether you agree or disagree with the IMF abandoning its role as international lender of…

A: The International Monetary Fund (IMF) is a global agency that monitors the global monetary system…

Q: Which of the following refers to the Direct Loan Program provided by the Export-Import Bank of the…

A: Exim bank is the export and import bank that facilitates the financial assistantance to the…

Q: In Accounting, which of the following best defines "country risk"? a) The risk associated with…

A: The accounting and finance world talks of "country risk," a notion that captures how a certain…

Q: Evaluate the arguments for and against a firm pursuing an active currency risk management program.

A: Currency risk management refers to the techniques that help a company or creditor secure their cash…

Q: A) An increase in the European money supply leads to appreciation of the dollar against euro in the…

A: The exchange value is the rate of foreign money that a local currency may be exchanged for on the…

Q: 24 Supply for pounds Demand for pounds 18 Supply for pounds The Imbalance 0.6 Demand for pounds 12…

A: Price , interest rate and many more factors affect the exchange rate and lead to appreciation and…

Q: II Read the material below and answer the relative questions., 1.You are provided with the following…

A: Answer: Official settlement balance means overall measurement of countries financial transactions…

Q: 5. Which of the following is correct? ) Depreciation in value of domestic currency s caused because…

A: According to the given question we can see that Option(d) is the correct answer that it both a…

Question

34) Foreign exchange reserves are
A) Held illegally by many countries.
B) Holdings of foreign exchange by official government agencies.
C) Holdings of foreign exchange by individual citizens.
D) Used by the Federal Reserve in open market operations.
Show Transcribed Text
46) Which of the following is true about income inequality?
A) Inequality tends to be greatest in the poorest countries.
B) Inequality is not an issue for developed countries.
C) Inequality tends to get worse as a country develops.
D) Inequality tends to diminish as the population increases.
Show Transcribed Text
47) Poverty is most likely to decrease when
A) Population increases regardless of what happens to economic growth.
B) GDP increases regardless of what happens to population growth.
C) Population growth exceeds economic growth.
D) Economic growth exceeds population growth.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Define Foreign exchange reserve

VIEW

Step 2: Explain the correct option

VIEW

Step 3: Explain why other options are incorrect

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

please solve
Explain partially convertible currency
Can you answer the questions, please? I do not need an explanation, I need only a correct answer. 49) Which one of the following would appear as a debit item in the UK balance of payments? A) Honda invests in a new factory in the UK. B) American tourists fly BA. C) A Japanese pension fund buys shares in a British oil company. D) Foreign tourists spend money in London. E) A British wine merchant purchases wine from Chile 50) Which of the following policies could a government or central bank pursue to prevent the exchange rate from depreciating? A) Raise interest rates B) Increase the money supply through open-market operations C) Raise taxes D) Buy foreign currencies on the foreign exchange market
If we assume imperfect asset substitutability, how does a sterilized foreign exchange intervention of selling foreign assets affect the risk-adjusted expected return on foreign currency deposits curve? It will shift to the left because domestic assets are perceived less risky by the market. It will remain the same. It will shift to the right because domestic assets are perceived less risky by the market. It will shift to the left because domestic assets are perceived riskier by the market. It will shift to the right because domestic assets are perceived riskier by the market,
How would each of these events affect the supply or demand for Japanese yen? A) Stronger U.S. economic growth. B) A decline in Japanese interest rates. C) Higher inflation in the United States.
Explain this function of Banko Sentral ng Pilipinas: -Liquidity management -Currency issue -financial supervision -Management of foreign currency reserves
Suppose a U.S. dollar exchanges for 2 British pounds, then each pound is worth Group of answer choices $.50. $1. $4. $.25.
Please use the following debit and credit entries for various BOP accounts (in billions of $) to answer the next question: Account Capital Net Investment Income Service Merchandise Official Reserve Unilateral Transfers The Balance of Trade should be (in billions of $): 2160 surplus 986 deficit 964 deficit 990 surplus Credit 600 10 140 4,000 200 30 960 deficit Debit 1,200 6 150 3,000 800 4
6
Mr. Ali is an exchange broker. He always researched for opportunities of profit through the currencies fluctuations using the strategy 'Buy low, sell high'. He collected the below quotes: Quote GBP/OMR INR/OMR EUR/OMR AUD/OMR Spot 0.5319 0.0056 0.4581 0.2953 Forward 0.5350 0.0053 0.4518 0.2970 Which currency is more beneficial to invest in? O a. AUD O b. EUR O c. INR O d. GBP
QUESTION 1 Select all of the following that are true regarding international transactions, ceteris paribus: As a currency (FX) appreciates, inflation due to imports is reduced A modestly more contractionary monetary policy will appreciate a country's currency in FX As a currency (FX) appreciates, exports are reduced A reduction in long term fiscal policy investment in a country will appreciate the currency in FX A modest increase in a country's inflation rate will appreciate its currency in FX
Disscuss currency swap with example.