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.
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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.
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