An Excess Demand for Foreign Currency at Current Exchange Rates

question 100

Multiple Choice

An excess demand for foreign currency at current exchange rates is known as a

• A)Balance-of-payments deficit.
• B)Trade deficit.
• C)Balance-of-payments surplus.
• D)Trade surplus.

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Definitions:

Federal Reserve Bank

The central banking system of the United States, responsible for setting monetary policy.

Funds Availability

Funds availability is a banking term that refers to the length of time before a deposited check or electronic payment clears and becomes available for withdrawal or use.

UCC

The Uniform Commercial Code represents a detailed collection of statutes that regulate every commercial transaction across the United States.

Electronic Check Presentment

A process that allows financial institutions to exchange digital images of checks instead of physical checks for faster processing.