Which of the Following Is Not Directly Affected by Monetary

question 90

Multiple Choice

Which of the following is not directly affected by monetary policy?

• A)The money supply
• B)The banking system
• C)The availability of credit
• D)The budget deficit

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Definitions:

Spot Rate

The ongoing market value at which an individual asset can be acquired or disposed of for immediate transfer.

Spot Exchange Rate

The present rate at which a currency is traded for instant delivery.

Exchange Rate

The price at which one currency can be exchanged for another, which can fluctuate based on supply and demand in the foreign exchange market.

Cross-Rate

An exchange rate between two currencies derived from their respective exchange rates with a third, common currency.