As the Relative Expected Return on Dollar Deposits Increases,foreigners Will

question 36

Multiple Choice

As the relative expected return on dollar deposits increases,foreigners will want to hold more ________ deposits and less ________ deposits.

• A) foreign; foreign
• B) foreign; dollar
• C) dollar; foreign
• D) dollar; dollar

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Definitions:

Fine Imposed

A monetary penalty levied by an authority on individuals or entities as punishment for violations of legal rules or regulations.

Interest Rate

The cost of borrowing money or the compensation for the service and risk of lending money, usually expressed as a percentage.

Plaster

A mixture of water, lime, or cement, and sand, used to coat walls and ceilings for a smooth or decorative finish.

Labor

Human effort used in the production of goods and services in the economy.