Which of the Following Statements Is False

question 150

Multiple Choice

Which of the following statements is false?

• A) The exchange rate is the price of one (country's)currency in terms of another (country's)currency.
• B) A currency has appreciated in value if more of a foreign currency is needed to buy it.
• C) A change in the money supply can change aggregate demand.
• D) A change in business taxes can change investment,which can change aggregate demand.
• E) none of the above

Calculate expected returns using the CAPM formula and other financial models.

Analyze the effects of macroeconomic factors on stock returns using multi-factor models.

Identify arbitrage opportunities and understand the principles of arbitrage pricing theory.

Evaluate portfolio performance using risk-adjusted measures.

---

Definitions:

Society's Resources

The total means available to a society, including natural resources, human capital, and manufactured goods, used for production and consumption.

Free-Market System

An economic system where prices for goods and services are determined by the open market and consumers, in which the laws and forces of supply and demand are free from any intervention by a government, price-setting monopoly, or other authority.

Wage

The amount of money paid to an employee by an employer in exchange for work performed, usually expressed on a per-hour, per-day, or per-project basis.

Interest Income

Earnings received from deposit accounts like savings or money market accounts, certificates of deposit, or income from bonds and loans made to others, calculated as a percentage of the principal amount.