Figure 10-2 -Refer to Figure 10-2. Who Generates a Supply of Dollars

question 25

Multiple Choice

Figure 10-2
-Refer to Figure 10-2. Who generates a supply of dollars in the foreign exchange market?

• A) U.S. residents who demand foreign goods, services, and assets.
• B) U.S. residents and firms who wish to sell domestic assets to foreigners.
• C) Foreign residents abroad who demand U.S. goods, services, and assets.
• D) Foreign banks and citizens who wish to increase their holdings of a reserve currency.

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Definitions:

Earnings Before Taxes

A company's profitability measure calculated by subtracting all expenses, except taxes, from revenues.

Earnings Per Share

A company's profit divided by its number of outstanding shares of common stock.

Convertible Bond

A type of bond that allows bondholders the option to convert their debt into a predetermined number of shares of the issuing company.

Call Price

The price at which a bond or other financial security can be repurchased by the issuer before its maturity date, often higher than the face value to compensate investors.