If USResidents Want to Buy More Foreign Bonds,then in the Market

question 13

Multiple Choice

If U.S.residents want to buy more foreign bonds,then in the market for foreign-currency exchange the exchange rate

• A)and the quantity of dollars traded rises.
• B)rises and the quantity of dollars traded falls.
• C)falls and the quantity of dollars traded rises.
• D)and the quantity of dollars traded falls.

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Definitions:

Positive

A term usually referring to values greater than zero, or a positive attitude or outcome in a broad sense.

Expected Value

The weighted average of all possible values of a random variable, with the weights being the probabilities of the outcomes.

Portfolio

A blend of financial contributions, featuring stocks, bonds, market commodities, ready money, and equivalents of cash, comprising also mutual funds and ETFs.

Stocks

Shares of ownership in a corporation or financial asset, which represent a claim on the company's earnings and assets.