6. Moving funds into and out of foreign currencies to take advantage of higher domestic or foreign interest rates is known as: a. foreign-exchange speculation. b. foreign-exchange protection. c. exchange-rate arbitrage. d. interest arbitrage. 7. When money serves as a mechanism for transforming current income into future purchases it is functioning as a: a. medium of exchange. b. store of value. c. store of account. d. unit of account. 8. In an open economy, a contractionary monetary policy causes: a. interest rates to rise and inflows of foreign capital. b. interest rates to fall and inflows of foreign capital. c. interest rates to rise and outflows of foreign capital. d. interest rates to fall and outflows of foreign capital