Which of the Following Statements Is Most Correct

question 58

Multiple Choice

Which of the following statements is most correct?

• A)The Export-Import Bank is a United States government-sponsored institution which is owned by member banks that deal in financing foreign trade.
• B)Foreign exchange markets can be characterized most properly as a communication network among many financial institutions than as an identifiable geographic location.
• C)When a financial institution with accounts abroad sells claims against those accounts, it must replenish those accounts by borrowing abroad or shipping currency.
• D)The banker's sight draft is the most expensive way to purchase a claim to foreign exchange.

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Definitions:

Industry

A distinct group of productive or service businesses that share similar characteristics, processes, or goods.

Perfect Competitor

A theoretical firm in a perfectly competitive market where no single buyer or seller has the market power to influence prices.

Long Run

The long run is a period in which all factors of production and costs are variable, allowing for complete adjustment to changes.

Short Run

A period of time during which at least one of a firm's inputs is fixed, limiting its ability to adjust to changes in market demand or supply.