Question

The Basel Accord requires banks to hold as capital an amount that is at least ________ of their risk-weighted assets.

Group of answer choices

10%

8%

5%

3%

Question

The decision by inflation targeters to choose inflation targets ________ zero reflects the concern of monetary policymakers that particularly ________ inflation can have substantial negative effects on real economic activity.

below; high

below; low

above; high

above; low

Question

Everything else held constant, if a factor increases the demand for ________ goods relative to ________ goods, the domestic currency will appreciate.

foreign; domestic

foreign; foreign

domestic; domestic

domestic; foreign

Question

When the value of the dollar changes from 0.75 to 0.5, then the British pound has ________ and the U.S. dollar has ________.

appreciated; appreciated

depreciated; appreciated

appreciated; depreciated

depreciated; depreciated

Question

A current account surplus indicates that America is ________ its claims on foreign wealth, while a deficit indicates that this country is ________ its claims on foreign wealth.

reducing; reducing

reducing; increasing

increasing; reducing

increasing; increasing