Which of the Following Is a True Statement About Equilibrium

question 52

Multiple Choice

Which of the following is a true statement about equilibrium in the foreign exchange market?

• A)Net exports are zero.
• B)The expected return on domestic assets is equal to the expected return on foreign assets.
• C)Foreigners wish to purchase the entire supply of domestic assets.
• D)The relevant central banks meet regularly to choose the equilibrium exchange rate.

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Definitions:

Individualistic Cultures

Societies that emphasize personal achievements and rights over group goals and cohesion.

Collectivistic Cultures

Societies that prioritize the needs and goals of the group over the desires and ambitions of the individual.

Pronouns

Words used to substitute for nouns, often to avoid repetition and denote possession, gender, or openness.

Egalitarianism

A principle that emphasizes equality, advocating for equal rights and opportunities within a group or society.