A Decrease in the Demand for U

question 279

Multiple Choice

A decrease in the demand for U.S. exports ________ the demand for U.S. dollars and shifts the demand curve for U.S. dollars ________.

• A) increases; rightward
• B) decreases; rightward
• C) decreases; leftward
• D) increases; leftward

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Definitions:

Coupon Rate

The coupon rate is the annual interest rate paid on a bond, expressed as a percentage of the face value.

Yield To Maturity

The total return anticipated on a bond if the bond is held until its maturity date, factoring in its current market price, par value, interest payments, and time to maturity.

Current Yield

The yearly earnings from interest or dividends, when divided by the security's current market price.

Capital Gains Yield

Results from changing prices and is calculated as (P1 - P0)/P0, where P0 is the beginning-of-period price and P1 is the end-of-period price.