All currencies other than the domestic currency of a given country are referred to as ?
Correct answer: B. foreign exchange
- A. hard currency
- B. foreign exchange
- C. reserve currencies
- D. near monies
Explanation
Foreign exchange means foreign currencies, or claims payable in those currencies, traded against the domestic currency. Hard and reserve currencies are narrower classifications, while near money refers to liquid assets rather than foreign currencies.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Macroeconomics
The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
Practise Macroeconomics
1,499 free Macroeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Economics questions like this
Economics is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Macroeconomics questions
In 1971, most countries ?
Expansionary monetary policy ?
The fall in value of one currency relative to another is ?
Speculators in foreign exchange markets do all of the following except ?
The real effective exchange rate for the U.S dollar ?
Investor engage in _____ when they move funds into foreign currencies in order to take advantage to interest rates abroad that are higher than domestic interest rates ?