Today,the Short-Run Demand and Supply of Foreign Currency Originating from Financial

question 92

Multiple Choice

Today,the short-run demand and supply of foreign currency originating from financial transactions is

• A) much more important than is the demand and supply of foreign currency originating from trade in goods.
• B) much less important than is the demand and supply of foreign currency originating from trade in goods.
• C) of equal importance as is the demand and supply of foreign currency originating from trade in goods.
• D) the only important factor in determining short-run exchange rates.

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Definitions:

After Tax Yield

The income return on an investment after taxes have been deducted, revealing the net gain to the investor.

Corporate Bond

A debt security issued by a corporation and sold to investors, with the promise of interest payments and the return of principal at maturity.

Tax Bracket

Ranges of income taxed at particular rates, which typically progress from low to high depending on the taxable income level.

Taxable

Refers to income or transactions that are subject to tax by governmental authorities.