If the US and Japan Engage in Substantial Financial Flows but Little

question 41

Multiple Choice

If the U.S. and Japan engage in substantial financial flows but little trade, ____ directly influences their exchange rate the most. If the U.S. and Switzerland engage in much trade but little financial flows, ____ directly influences their exchange rate the most.

• A) interest rate differentials; interest rate differentials
• B) inflation and interest rate differentials; interest rate differentials
• C) income and interest rate differentials; inflation differentials
• D) interest rate differentials; inflation and income differentials
• E) inflation and income differentials; interest rate differentials

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Definitions:

Insider Trading

The trading of a public company's stock or other securities by individuals with access to non-public, material information about the company.

Mail Fraud

A crime involving the use of postal services to carry out any scheme to fraudulently obtain money or valuables.

Fraudulent Use of Transit

The unauthorized use or manipulation of transportation systems or services for deceptive or unlawful purposes.

False Pretenses

Obtaining property, goods, or services from another by misrepresentation or deceit, typically involving a false statement of fact.