Deposits in European banks denominated in dollars for the purpose of international transactions are known as: A. European monetary units B. European currency units C. Eurodollars D. international monetary units

Deposits in European banks denominated in dollars for the purpose of international transactions are known as: A. European monetary units B. European currency units C. Eurodollars D. international monetary units

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: Gresham’s Law is the tendency to hoard currency as its commodity value True False

A: Gresham's law of economics states that if coins containing metal of different value have the same…

Q: Fill in the blanks using the following words: higher, lower, UK, Netherland, stable, equalized,…

A: investor = 1,000 interet rate in britain = 2% interest rate in netherlands = 2.5%

Q: How would each item be counted in the US balance of payments? Give sign, category (e.g. export, FDI,…

A: Macroeconomics is a part of economics that deals with production, decision and allocation concerning…

Q: explore whether Russian currency over or undervalued against the U.S. dollar and other major…

A: Natural reasons, such as political issues making the rest of the world afraid of keeping that…

Q: Explain some consequences if you were in a foreign country for an extended period of time (such as a…

A: Currency depreciation is a fall in the value of a currency in terms of its exchange rate versus…

Q: Find the value of an at the money option to buy €12,500 for £10,000. In the next period, the euro…

A: In the world of finance , options play a crucial role in providing investors with the opportunity…

Q: Explain the concept of “Eurocurrency”. What are its benefits and drawbacks?

Q: Panama uses the USD as their official currency since 1903 because their own peso was highly…

A: Controlling an inflation is necessary for any country .Inflation is considered bad because it…

Q: Give an example in the recent past when the Central Bank intervene in the foreign exchange market in…

A: Answer: Foreign exchange intervention is one of the main functions of any central bank, in this…

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: What countries currently use the EURO?

A: To determine the countries that use euro as their currency.

Q: why did the people of Germany not accept Mark as their currency in 1923?

A: During this period of wars, the impact on the economy is negative.

Q: A British pound cost $1.56 in U.S. dollars in 1996, but $1.66 in U.S. dollars in 1998. Calculate…

A: British Pound = $1.56 U.S. Dollar (1996) British Pound = $1.66 U.S. Dollar (1998)

Q: The three types of accounts related to balance of payments are:

A: The balance of payments is a statement that shows the transactions made by a country’s residents,…

Q: The following table shows the number of U.S. dollars required to buy one euro between February 1,…

A: The objective of the question is to determine the change in the value of the U.S. dollar against the…

Q: Did you hear about bitcoin? Will the development in these other forms of money reduces the demand…

A: Yes, bitcoin is a type of cryptocurrency.

Q: Why USD considered to be a world class currency and dealt with globally instead of Russian ruble or…

A: In the international market, when countries make an exchange of different goods and services, they…

Q: Over the past three decades, trade and investment between countries in East and Southeast Asia have…

A: The concept of a single currency for East and Southeast Asia is intriguing, and its feasibility can…

Q: Which of the following is a key benefit of adopting the euro? Select one: a. It makes imports of…

A: The Euro is the official currency of the Eurozone, which is a monetary union of 19 of the 27…

Q: Can a numeraire last if its home country does not have strong economic added value -utside of the…

A: Currency of country is the monetary amount of money that is used to purchase goods and services in…

Q: One reason that the quantity of money demanded will increase as the value of a currency decreases is…

A: Import Effect is defined as expensive imports when the domestic currency weakens.

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: Which of the following parties will suffer if the value of the US dollar decreases? Group of…

A: Devaluation is the process through which a currency loses value when measured against other…

Q: Interest payments on loans borrowed abroad are recorded in _______________. Select one: a. official…

A: Borrowings from abroad is also known as foreign debt which is the money or any financial assistance…

Q: When the value of the American dollar increases with respect to other countries' currency, most…

A: An increase in the value of the American dollar would be termed as an appreciation of the American…

Q: You are advising a small country on whether to print its own money or to use the money of its larger…

A: Currency alludes to an arrangement of money that is utilized as a medium of exchange for goods and…

Q: Rate the euro from May 31, 2013 until June 30, 2023. What caused the movement in the Euro?

A: The value of the Euro is influenced by economic, political, and market-related factors. Economic…

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: Many forces affect the long-run cost structure of operating in two countries. One would be the…

A: Differences in price levels between foreign countries and the United States can have a significant…

Q: _______Refers to the market for national currencies of different countries in the world?

A: According to the given question In simple words we can say that currency is relatively considered as…

Q: Recently U.S. dollar has been very strong relative to the major currencies. Do you like it? How…

A: Currencies, also known as money or legal tender, are medium of exchange widely accepted in a…

Q: How much damage can Saudi Arabia do to the United States economy if they started selling their Oil…

A: US has been trading partner with Saudi Arabia since long. Saudi Arabia gets weapons and arms from US…

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: Use the Japan currency and describe its value relative to the Canadian dollar. Is it under or…

A: 0.010 Canadian Dollar = 1 Japanese Yen.

Q: I got confused with this one and thought the transaction would not be recorded in the balance of…

A: - New Yorker buys a $100 telephone answering machine in New Jersey . The New Jersey company deposits…

Q: What is the currency regime of the Dominican Republic, referring to the 4 categories and 10…

Q: Can you show me a Supply and Demand graph that shows how each of these events would either lead to a…

A: Demand Curve refers to the graphical representation of the relationship between the price of a good…

Question

Deposits in European banks denominated in dollars for the purpose of international transactions are known as:

A. European monetary units

B. European currency units

C. Eurodollars

D. international monetary units

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

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 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

What would make a country decide to change froma common currency, like the euro, back to its owncurrency?
Central Banks of particular countries may have an incentive to devalue their country currency relative to other country currencies in their effort to Increase demand and exports for the country's products Increase imports in the domestic market of the country Ob. Reduce exports from the country C. All of the above d.
What are some of the main reasons not all countries in the EU have adopted the Euro?
Deposits of Australian dollars held at authorised deposit-taking institutions are government money horizontal money part of the monetary base?
Explain to the citizens of your country the situations that surround the balance of payment in an economy.
At the international Bretton-Woods Conference that designed the International Monetary Fund, participating countries' representatives agreed to peg the value of their currencies to: O U.S. dollar Euro O A basket of U.S. dollar, U.K. pound, French franc and German mark SDR
The world has undergone some changes in monetary system. What had happened in terms of exchange rate system during the Gold Standard Era, Interwar Years and Bretton Words? Explain.
I need the answer as soon as possible
In 1971 a British company, Beecham Group, received a Swiss franc loan of CHF 100 million. By the time the loan was repaid in 1976, the British pound had depreciated significantly against the Swiss franc. Which of the following statements is correct? A. The cost in British pounds of making the repayment did not change. B. The financial manager of Beecham Group would not be concerned about the change in the value of the pound. C. The change in the value of the British pound increased the profitability of the Beecham Group. D. The cost in British pounds of making the repayment increased significantly.
In the paper by Degrauwe, The Governance of a Fragile Eurozone by Paul De Grauwe, he argues that the fundamental problem in the Euro-zone today is that countries cannot borrow in their own currencies. Explain what he means by this and what the consequences of this are for Euro-zone countries currently in crisis. DeGrauwe argues that countries in the Eurozone monetary union can face both liquidity and solvency crises – problems that could not occur in a country that issues its own currency, like the UK. Explain. Refer to his comparison of Spain to the UK.
If one U.S. dollar is traded on the foreign exchange market for about 0.89 euros, then one euro can purchase about U.S. dollars. a) 0.75 b) 1.12 c) 1.75 d) 0.89
explain comprehensively what are the benefits faced in using LCS (Local Currency Settlement) ? and what is the role of the LCS in the monetary stability of a country?