If a Mexican Pension Fund Decides to Purchase U

question 162

Multiple Choice

If a Mexican pension fund decides to purchase U.S.government bonds,what is the effect in the foreign exchange market?

• A)It will increase demand for U.S.dollars.
• B)It will decrease demand for U.S.dollars.
• C)It will increase supply of U.S.dollars.
• D)It will decrease supply of U.S.dollars.

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Definitions:

Homogeneous

Consisting of parts or elements that are all the same or similar in nature.

Heterogeneous

Composed of parts or elements that are different from each other, referring to diversity or variety within a group or structure.

Ingroup

Ingroup refers to a social group to which a person psychologically identifies as being a member.

Outgroup

A social group to which an individual does not identify or belong, often viewed with bias or prejudice.