Which of the Following Is a True Statement About Equilibrium

question 52

Multiple Choice

Which of the following is a true statement about equilibrium in the foreign exchange market?

• A)Net exports are zero.
• B)The expected return on domestic assets is equal to the expected return on foreign assets.
• C)Foreigners wish to purchase the entire supply of domestic assets.
• D)The relevant central banks meet regularly to choose the equilibrium exchange rate.

---

Definitions:

Automatic Processing

Mental operations that occur without conscious awareness or effort, allowing us to perform routine tasks quickly and efficiently.

Highly Familiar Words

Words that are well-known or commonly recognized and understood by most people.

Rapid Speed

Quick or swift pace, often used to refer to the rate at which something happens or changes.

Effortlessly Understands

Indicates the ability to grasp concepts, situations, or instructions easily and without apparent effort.