Authority which intervenes directly or indirectly in foreign exchange markets by altering interest rates is considered as

Related MCQs

• The exchange rate mechanism (ERM) crisis in 1992 represents the __________ in German interest rates that caused other European interest rates to __________, and resulted in less aggregate spending.
• A firm that buys foreign exchange in order to take advantage of higher foreign interest rates is
• An increase in UK interest rates relative to euro interest rates is likely to ________ the UK demand for euros and _________ the supply of euros for sale.
• The international Fisher effect suggests that should pound interest rates exceed US dollar interest rates:
• Based on interest rate parity, the larger the degree by which the foreign interest rate exceeds the UK interest rate, the:
• Suppose the exchange rates between the United States and Euro Area are in long-run equilibrium as defined by the idea of purchasing power parity. If the law of one price holds perfectly, then differences between U.S. and Euro Area rates of inflation would
• Which of the following is true of foreign exchange markets?
• Arbitrageurs in foreign exchange markets:
• If more European and Japanese firms want to build factories and expand their offshore investments in the United States, the supply of U.S. dollars on foreign exchange markets will increase as a result of this investment activity.
• The impact of blocked funds on the net present value of a foreign project will be greater if interest rates are _______ in the host country and there are _______ investment opportunities in the host country.