For the statements below indicate if it is true or false. If the statement is false, rewrite so that it is a true statement. Use the space available to answer your question. 1. Foreign exchange markets are markets in which people of one country exchange goods with people from another country. TRUE/False: 2. When the actual foreign exchange rate for the dollar is greater than the equilibrium rate, the dollar is undervalued, meaning that it will buy less in international trade than it will buy at home. TRUE/False : 3. For any given interest rate, the shorter the time period before the receipt a dollar, the lower is its present value. TRUE/False :$1,331 TRUE/False : 5. Changing the reserve requirement is such a powerful instrument of monetary policy that it is the most frequently used of all the available tools. TRUE/False : 6. The discount rate is the interest rate that one bank charges on a loan to another bank TRUE/False :7. The present value of a bond is the rate of interest times the expected annual income flow TRUE/False : 8. Treasury bill with a par value of $5000 sold at $4,750. After six month the discount of this treasury bill is 8.6% . Show your answer. TRUE/False : 9. Assuming free markets, purchasing power parity refers to a situation in which the real purchasing power of a currency is the same in domestic and international trade. TRUE/False : 10. When companies accumulate too much debt, they usually engage in secondary offerings to acquire money for paying the debt. TRUE/False