In the Open-Economy Macroeconomic Model,equilibrium in the Market for Foreign-Currency

question 78

Multiple Choice

In the open-economy macroeconomic model,equilibrium in the market for foreign-currency exchange is determined by the equality between the supply of dollars which comes from

• A)U.S.national saving and the demand for dollars for U.S.net exports.
• B)U.S.net capital outflow and the demand for dollars for U.S.net exports.
• C)domestic investment and the demand for U.S.net exports.
• D)foreign demand for U.S.goods and services and U.S.demand for foreign goods and services.

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Definitions:

Mortgagee's Claim

A claim made by the lender or mortgage holder for payment of the outstanding loan balance from the proceeds of a foreclosure sale.

Due On Sale Clause

A provision in a mortgage allowing the lender to demand full repayment if the property is sold.

Mortgage

A mortgage is a legal agreement by which a bank or other creditor lends money at interest in exchange for taking title of the borrower's property, with the condition that the conveyance of title becomes void upon the payment of the debt.

Remaining Balance

The total amount still owed on a debt or loan, not including current or future interest.