Perfect Asset Substitutability Is the Assumption That

question 44

Multiple Choice

Perfect asset substitutability is the assumption that

• A) the foreign exchange market is in equilibrium only when expected returns on domestic assets are greater than returns on foreign currency bonds.
• B) the foreign exchange market is in equilibrium only when expected returns on foreign currency bonds are greater than returns on domestic assets.
• C) the foreign exchange market is in equilibrium only when expected returns on all assets are negative.
• D) the foreign exchange market is in equilibrium only when expected returns on domestic assets are equal to returns on foreign currency bonds.
• E) the foreign exchange market is in equilibrium only when domestic assets are risk-free.

---

Definitions:

Profuse Bleeding

Excessive loss of blood from the circulatory system in a short period of time.

Emergency

A situation that poses an immediate risk to health, life, property, or environment, requiring urgent intervention.

Surgical Site

The specific area of the body where a surgical procedure is performed, requiring special care to prevent infection and promote healing.

Deep Breathe

An intentional, slow and deep inhalation followed by a slow exhalation, used to promote relaxation or improve lung function.