The Quantity of U

question 74

Multiple Choice

The quantity of U.S.dollars demanded in foreign exchange markets is related negatively to ________.

• A)the expected return on U.S.dollar assets relative to foreign assets
• B)the U.S.interest rate
• C)the demand for U.S.goods
• D)foreign interest rates

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Definitions:

Investment

The commitment of resources such as capital or time to an endeavor with the expectation of obtaining an income or profit.

Percentage Total Return

A measure of the performance of an investment, calculated by dividing the investment's profit by its initial cost.

Dividends

Payments made by a corporation to its shareholder members, usually derived from profits.

Capital Gains Yield

The appreciation in the price of an investment, calculated as the increase in the investment's value divided by its initial purchase price.