question

Entrepreneurs are the driving force of a market economy. Peter is an entrepreneur focused on becoming an owner of a successful business. Peter is motivated by a)the fundamental economic problem b)consumer goods c)opportunity cost d)the incentive of making profit and becoming wealthy

answer

d

question

The fundamental economic problem is the number of businesses that fail all over the world. a)true b)false

answer

b

question

Goods that are naturally available to all are called a)consumer goods b)free goods c)product goods d)capital goods

answer

b

question

Land, labor, capital, and entrepreneurship are the a)opportunity costs of businesses b)results of supply and demand c)results of production d)factors of production

answer

d

question

Education is valuable because of its a)value and efficiency b)scarcity and utility c)supply and demand d)scarcity and demand

answer

b

question

The power of the consumer in the market is called a)trade-offs b)consumer sovereignty c)opportunity cost d)supply and demand

answer

b

question

You receive a coupon in the mail that gives you a free meal at your favorite restaurant. You go to the restaurant and enjoy your free meal. The next time you go to the restaurant, you notice the price of your favorite dish has been raised. This example illustrates the concept of a)opportunity cost b)utility c)"there is no such thing as a free lunch" d)scarcity

answer

c

question

All goods and services have the same value for every person in the economy. a)true b)false

answer

b

question

A tire factory selling tires to a delivery company to use on its trucks is an example of a transaction that would take place in a product market. a)true b)false

answer

b

question

The opportunity cost of buying a slice of pizza for two dollars rather than a burrito for two dollars is a)the burrito b)the pizza c)there is no opportunity cost d)the two dollars spent on the pizza

answer

a

question

Scarcity is a problem only for economies that use money to coordinate decisions. a)true b)false

answer

b

question

Kelly, a rich businesswoman, finds that no matter how many pairs of shoes she buys, she can still find plenty more that she wants. Her salary only allows her to buy fifty pairs of shoes per year. She cannot buy as many shoes as she wants. Kelly is facing a)the fact that she cannot buy goods in a factor market b)a small opportunity cost for her shoes c)a large opportunity cost for her shoes d)the fundamental economic problem of scarcity

answer

d

question

Martha works at a retail store. She is paid by the store in a factor market and buys her clothing at the store in a product market. This cycle of individuals and businesses interacting is called a)the circular flow of economic activity b)an economic process c)scarcity d)the flow of factor markets

answer

a

question

By limiting their wants, people can eliminate scarcity. a)true b)false

answer

b

question

An individual buys a finished product for the purpose of consumption in a a)factor market b)product market c)demand market d)consumer market

answer

b

question

The opportunity cost of taking an unpaid vacation from work is the amount of money you would have made if you would have worked. a)true b)false

answer

a

question

Economics can be defined as a)the scientific study of interactions between markets and production b)the study of how people satisfy seemingly unlimited wants with scarce resources c)the limited description of economic activities and resources d)a branch of psychology

answer

b

question

One key strength of a command economy is its a)ability to use the invisible hand to its advantage b)ability to adapt quickly to differing economic needs in society c)ability to foster economic growth d)economic stability

answer

b

question

John's parents are fishermen, and ever since John was little he has been a fisherman. He uses little technology because he uses the fishing techniques of his ancestors. John is a part of a a)mixed economy b)traditional economy c)market economy d)command economy

answer

b

question

Economic decisions in a command economy are made by a)government agencies b)assembly line workers c)private businesses d)competition

answer

a

question

It is difficult for societies to achieve all of the economic goals because a)the pursuit of one often leads to the impossibility of achieving another b)there's scarcity c)there are only so many resources to go around d)consumers and business owners cannot agree

answer

a

question

Jamie works for the government in a factory. She works every day in order to fulfill government quotas. Her family lives in a modest apartment provided by the government. Jamie is part of a a)mixed economy b)command economy c)traditional economy d)market economy

answer

b

question

A mixed economy is a)an economy that does not allow any government regulation b)an economic system that mandates public ownership of the factors of production c)usually a failure because of a lack of resources d)an economic system that combines elements of other economic systems

answer

d

question

Which of the following is not considered an economic and social goal of society? a)stability b)economic growth c)economic efficiency d)entrepreneurship

answer

d

question

In a market economy, the decisions of "what," "how," and "for whom" are often determined by a)consumers and labor unions b)consumers and business owners c)government and business owners d)government

answer

b

question

Adam's incentive to open a new restaurant is profit. He knows that if he works hard and his restaurant is successful he will be able to earn a lot of money. Adam is a)an entrepreneur in a command economy b)an entrepreneur in a traditional economy c)going to fail because opening a new restaurant is difficult d)an entrepreneur in a capitalist economy

answer

d

question

The invisible hand is a metaphor used by Adam Smith a)to show the ability of the products to increase factors of production b)to explain the distribution of income equally to all c)to explain that business owners pay workers less than the value of their labor d)to explain that if all people were free to pursue their self-interest, the economy would naturally be guided to achieve the best for all

answer

d

question

George needs a new TV in order to watch the Super Bowl on Sunday. He wants to get the best deal, so he goes to many different stores and then buys the best TV for the cheapest price. This is an example of a)George being selfish, because he got the best deal possible b)self-interest and competition working together in a capitalistic environment c)a simple transaction occurring in a traditional economy d)self-interest and competition working together in a socialistic environment

answer

b

question

Changes in a market economy tend to be a)prohibited b)discouraged c)gradual d)revolutionary

answer

c

question

Since the mid-1900s, computers have evolved from the size of a large room to devices that fit in the palm of your hand. The technological capabilities of computers have increased production of many goods and services in the United States and throughout the world. Although computers have increased production, they have also eliminated many jobs. This is an example of a)achieving stability, while not being able to achieve full employment b)achieving equity, while not being able to achieve full employment c)achieving full employment, while not being able to achieve economic growth d)achieving economic growth, while not being able to achieve full employment

answer

d

question

According to Karl Marx, eventually the "have-nots" will a)rebel against the capitalist system and instigate socialism b)move up in society and become "haves" c)always be working to keep up with those who are more powerful in society d)overpower the socialist rulers and begin capitalism

answer

a

question

Gruel is an inferior good. Hence, an increase in consumer income a)decreases the supply of gruel b)increases the demand for gruel c)increases the supply of gruel d)decreases the demand for gruel

answer

d

question

A price compromise between buyer and seller is known as a(n) a)equilibrium price b)target price c)adjustment price d)deficiency payment

answer

a

question

New technology for manufacturing computer chips is developed. The new technology will a)not affect the supply of computer chips b)contribute to a decrease in the supply of computer chips c)contribute to cheaper production of computer chips

answer

c

question

A rise in the price of popcorn shifts the demand curve for popcorn rightward. a)true b)false

answer

b

question

New cars are a normal good. Suppose the economy enters a period of strong economic expansion so that consumer incomes increase substantially. What will happen to the demand for new cars? a)It will decrease because a rise in overall income produces a decrease in demand for normal goods. b)It will stay the same because people will increase the purchase of other goods. c)It will increase because a rise in overall income produces an increase in demand for normal goods.

answer

c

question

Since prices don't favor producers or consumers, they are described as a)biased b)flexible c)neutral d)fixed

answer

c

question

If both the demand and supply curves shift equal distances rightward, the equilibrium price rises. a)true b)false

answer

b

question

The government sets a price ceiling on pizza that is below the equilibrium price of pizza, causing a)no shortage of pizza b)a surplus of pizza c)a shortage of pizza d)none of these are correct

answer

c

question

A rise in the price of chicken feed shifts the supply curve of chickens leftward. a)true b)false

answer

a

question

The law of supply states that as the price of a good rises, the quantity supplied decreases. a)true b)false

answer

b

question

At any given price, a surplus of oranges will occur when a)the quantity supplied is greater than the quantity demanded b)the quantity demanded is the same as the quantity supplied c)the quantity demanded is more than the quantity supplied d)the quantity supplied is less than the quantity demanded

answer

a

question

A rise in the price of a game of bowling will a)result in a lot more people bowling b)decrease the demand for bowling balls c)decrease the demand for cars d)increase the demand for bowling balls

answer

b

question

In an unregulated market, which of the following will occur as a result of sudden destruction of a large proportion of the supply of housing? (Hint: This will cause a decrease in the supply of housing.) Drawing a diagram will help you. a)a surplus of rental housing b)higher rental prices c)a decrease in demand for rental housing d)a decrease in rental prices

answer

b

question

A decrease in consumer income shifts the demand curve leftward. a)true b)false

answer

a

question

The law of demand states that as the price of a good rises, the quantity demanded decreases. a)true b)false

answer

a

question

Monopolies face disadvantages that focus around a)inefficiency b)prices c)cost d)production

answer

a

question

One distinct difference between monopolistic competition and perfect competition is a)monopolistic competition is a monopoly b)product differentiation c)insignificant d)buyers and sellers must be fully informed

answer

b

question

More money becomes available for economic growth when a)pension funds increase b)people save c)there is high unemployment d)interest rates are high

answer

b

question

The main advantage that partnerships have over sole proprietorships is a)unlimited liability b)the ability to specialize c)the ease of obtaining a charter d)they are more likely to succeed

answer

b

question

The shoe industry in the current American economy, where many different types and brands are offered, is an example of a)a monopoly b)an oligopoly c)monopolistic competition d)perfect competition

answer

c

question

In the business cycle, a recession a)is a major increase in economic growth b)exists when there is an overall downturn of the economy c)is the peak of economic growth d)is measured when economic growth changes and begins to increase

answer

b

question

In order for people to use the savings of others, the economy must have a(n) system—a network of savers, investors, and financial institutions. a)transfer b)saving c)financial d)investment

answer

c

question

The economy is experiencing expansion. a)yes b)no

answer

a

question

The economy is experiencing an increasing unemployment rate and a high inflation rate. a)yes b)no

answer

b

question

The economy is experiencing a recession. a)yes b)no

answer

b

question

The economy is experiencing a recession. a)yes b)no

answer

a

question

The economy is experiencing an increase in overall GDP. a)yes b)no

answer

a

question

GDP is not a proper measure of the total production of the United States economy because a)it does not take illegal or black market production into consideration b)it only includes final goods c)it does not account for household labor or volunteer labor d)all of the above

answer

d

question

The Department of ___________ compiles the statistics on the nation's output and income. a)Commerce b)Health and Human Services c)Defense d)Internal Revenue

answer

a

question

The United States GDP, which is the market value of all final goods and services produced in the nation in a year, is calculated by a)adding the expenditures of the four sectors of the economy b)multiplying production by consumption c)subtracting total imports from exports d)It is impossible to compute the GDP because it is impossible to measure all production data.

answer

a

question

The airline industry in America is an example of __________, because a few firms dominate the industry. a)a monopoly b)perfect competition c)monopolistic competition d)an oligopoly

answer

d

question

hich of the following is an economic right of all businesses in the United States? a)voluntary exchange b)the ability to function as a monopoly c)involuntary exchange d)government ownership of property

answer

a

question

What is the main difference between inflation and deflation? a)Inflation is an overall decrease in price, and deflation is an overall increase in price. b)Inflation is an overall increase in price, and deflation is an overall decrease in price. c)A high inflation rate means the economy is doing poorly, while a high deflation rate means the economy is doing well. d)A high inflation rate means the economy is doing well, while a high deflation rate means the economy is doing poorly.

answer

b

question

Which of the following is an economic responsibility of all businesses in the United States? a)Close on all government regulated holidays. b)Spread negative information about the competition. c)Draft a code of ethics and make all employees sign it. d)Conduct all business in an honest and ethical manner.

answer

d

question

In the business cycle, a trough is a)the peak of economic growth b)measured when economic growth is decreasing c)measured when economic growth changes and begins to increase d)a major downturn in economic growth

answer

c

question

Saving makes economic growth possible because a)financial institutions lend the savings of others to those who will invest them b)it means people have extra money and are spending less of it c)buyers and sellers are working together to make saving possible d)saving is more important than investing

answer

a

question

One advantage of a corporation is a)unlimited liability for its owners b)it cannot enter into any legal contracts c)the ease of obtaining a charter d)a lifespan that is not linked to a specific owner

answer

d

question

Monopolies are typically created because a)there is a lack of business interest in an industry b)the government promotes the establishment of monopolies c)the industry has high barriers to entry that prevent many businesses from entering the industry d)increasing competition discourages new businesses from entering the industry

answer

c

question

One weakness of a sole proprietorship is that the a)owner has no control b)owner faces unlimited liability c)owner has too many partners d)business will eventually go bankrupt

answer

b

question

What is the difference between real and nominal GDP? a)Real GDP is adjusted for inflation, while nominal GDP is not. b)There is no difference. c)Real GDP is exact, while nominal GDP is estimated. d)Real GDP is estimated, while nominal GDP is exact.

answer

a

question

An oligopoly a)is an industry dominated by a small number of firms b)requires a partnership c)is established when perfect competition exists d)only occurs when buyers and sellers are fully informed

answer

a

question

Which of the following is a function of our current banking system? a)acting as a medium of exchange b)lending money c)determining the value of money d)regulating the money supply

answer

b

question

In order to control inflation, governments might a)sell government securities b)all of these are correct c)increase taxes d)decrease government spending

answer

b

question

John Maynard Keynes believed that all economic problems are caused by a)unemployment b)inflation c)the GDP d)decreases in business sector spending

answer

d

question

George Sparks has just been laid off. He had an excellent job as a computer programmer, but due to company cutbacks he lost his job. While looking for another job, he is able to collect unemployment insurance. This is an example of a)monetary policy b)an automatic stabilizer c)discretionary fiscal policy d)taxation

answer

b

question

The Environmental Protection Agency (EPA) impacts the economy by a)providing consumers and businesses with protection and a sense of security when making economic decisions b)creating and enforcing truth-in-advertising laws to protect consumers c)providing banking insurance so depositors' money is protected when it is placed in bank accounts d)developing and enforcing regulations that protect human health and the environment

answer

d

question

The Department of Defense is an important part of the economy because a)it protects human health and the environment so consumers and businesses will be safe b)it provides consumers and businesses with protection and a sense of security when making economic decisions c)it provides banking insurance so depositors' money is protected when it is placed in bank accounts d)it develops military strategies during times of war

answer

b

question

In a recession, fiscal policy calls for the government to decrease taxes and increase spending. a)true b)false

answer

a

question

What is the purpose of the Federal Reserve? a)to regulate the money supply in order to create a stable economy b)to insure all money deposited within banks c)to control all business exchanges within the United States d)to accept deposits and lend money to customers

answer

a

question

Economic regulations help fulfill Adam Smith's idea of a laissez faire economy. a)true b)false

answer

b

question

What economic concept do the Fourth and Fifth Amendments to the Constitution identify? a)the organization of the Federal Reserve b)private ownership of property c)competition among businesses d)regulation of monopolies

answer

b

question

John Furry purchased a vacation package from a telephone solicitor. The person asked John for a two-hundred-dollar deposit via credit card in order to reserve his package. John gave the solicitor his credit card number, but he never received the vacation. The agency responsible for investigating this fraud is a)the Federal Trade Commission b)the Food and Drug Administration c)the Environmental Protection Agency d)the Consumer Product Safety Commission

answer

a

question

Increasing the discount rate in order to decrease the money supply is an example of fiscal policy. a)true b)false

answer

b

question

Hypothetical situation: The economy has been declining for six months. The unemployment rate has increased by 2 percent in the past six months, and many Americans are looking for work. Production has decreased and many businesses are simply not investing or hiring new workers. Consumers are saving (not spending) their money because they are worried about current events. What should the Federal Reserve Board do? a)They should raise the reserve rate and sell government securities in order to expand the money supply. b)They should do nothing; the economic decreases are due to regular business cycles and the economy will bounce back. c)They should lower taxes and increase government spending in order to increase overall demand. d)They should lower the discount rate and buy government securities in order to expand the money supply.

answer

d

question

One of the main reasons for increasing economic regulations in the United States is the increasing population. a)true b)false

answer

a

question

Crazy Eight is very excited because he is opening a new business. He purchased a building, equipment, a license, and computers, and he remodeled his building. He also was able to acquire a patent for his new idea. He invested all his savings in the new business and he is hoping his new business will take off. Crazy Eight was able to open this new business because a)he is able to bypass all the government regulations in order to open an illegal business b)he is leasing the building from the government under an agreement he will manufacture what the government orders c)the government guarantees he is able to own property and ideas d)he is a good businessman and will succeed

answer

c

question

When the Federal Reserve decides it is necessary to expand the money supply, it might a)lower taxes b)decrease the reserve requirement c)increase the discount rate d)sell government securities

answer

b

question

The purpose of economic regulations in the United States is to a)control population growth and birth rates b)limit the individual freedoms of all Americans c)promote economic growth, stability, and equity d)undermine the free-market econom

answer

c

question

When the Federal Reserve sells government securities, it results in a decrease in the money supply. a)true b)false

answer

a

question

The time period between when an economic policy is decided and when it actually takes effect is called a(n) a)waiting period b)certification break c)lag d)automatic stabilizer

answer

c

question

The main duties of the Fed are to conduct monetary policy, provide banking services to financial institutions, and a)raise and lower taxes b)regulate the banking industry c)enforce all economic regulations passed by the government d)conduct fiscal policy

answer

b

question

Monetary policy alone is the most effective economic policy. a)true b)false

answer

b

question

In the United States, income tax is an example of a __________ tax, while sales tax is an example of a __________ tax. a)regressive; progressive b)progressive; regressive c)progressive; proportional d)proportional; regressiv

answer

b

question

One of the most important economic results of World War I for the United States was a)a recession b)the United States moving from being a debtor nation to being a creditor nation c)the United States moving from being a creditor nation to being a debtor nation d)the Great Depression

answer

b

question

President Ronald Reagan's new economic strategy, Reaganomics, included a)raising taxes b)cutting taxes and decreasing government spending c)cutting taxes and increasing government spending on domestic programs. d)raising taxes and increasing spending

answer

b

question

During the Great Depression, the major reason for farmers receiving low prices for their crops was a)poor farming methods b)corruption c)overproduction d)underproduction

answer

c

question

The state of hostility that existed between the two world powers from World War II through the 1980s was called a)the Cold War b)immigration c)World War II d)tension

answer

a

question

The three Rs of the Great Depression were a)research, read, and reform b)reform, recession, and research c)relief, recession, and reform d)reform, relief, and recovery

answer

d

question

The Agriculture Adjustment Act brought much criticism because a)it increased the number of farms in the United States b)it offered farmers money to destroy crops and leave land uncultivated c)it decreased employment of farmers d)it drove the price of food lower than it had ever been

answer

b

question

Labor movement refers to the a)movement of workers from farms to the industrial cities b)efforts of workers to improve their economic position c)building of the railroads d)increasing number of jobs available to Americans in the nineteenth century

answer

b

question

The purpose of the Montgomery GI Bill was to a)provide economic assistance, including education and housing assistance, to all veterans b)help all disabled veterans receive medical care c)expand the military during the Cold War d)help all families recover after World War II

answer

a

question

New technology and consumer spending created a)the Great Depression b)the economic prosperity of the 1920s c)the New Deal d)the labor movement

answer

b

question

The Federal Deposit Insurance Corporation a)replaced Hoover's Reconstruction Finance Corporation b)regulated the savings and loan industry c)regulated the stock and bond markets d)insured bank depositors' savings

answer

d

question

Which of the following was a cause of the recession of the 1980s? a)overproduction b)increasing employment c)large government deficits and increased consumer spending d)insufficient production in the United State

answer

c

question

Economists are hired by private businesses to a)analyze economic data b)program computers c)manage companies d)do general labor

answer

a

question

The labor movement resulted in a)competition for jobs in the cities, making it hard for people to find work b)a large population of unskilled workers in the cities c)outlawing of child labor, in eight-hour work days, and in safer working conditions d)the elimination of labor unions

answer

c

question

The War Industries Board a)helped produce a United States depression during World War I b)converted businesses to produce needed products during the Great Depression c)did not have any power during World War I d)converted businesses to the war effort during World War I

answer

d

question

What actually brought the United States completely out of the Great Depression? a)the Second New Deal b)World War II c)World War I d)the New Deal

answer

a

question

The economic prosperity of the 1990s was primarily due to a)all of these are correct b)the dot-com businesses which developed in the 1990s c)the new economy created by the Internet d)the development of the computer industry

answer

a

question

A labor union is a)an organization that may resort to going on strike if its demands are not met b)all of these are correct c)an organization that takes part in collective bargaining with employers d)an organization of workers who seek better treatment for workers

answer

b

question

During the Hundred Days a)Roosevelt developed a clear idea of how to solve the nation's economic problems b)Roosevelt awaited his inauguration and prepared a strategy c)Congress delayed action on Roosevelt's legislation d)Congress passed many major bills to help relieve the Great Depression

answer

d

question

The most significant legacy of the New Deal is a)The New Deal did not leave any lasting impact on the United States. b)separation of church and state c)a decrease in federal programs and in the size of the federal government d)an increase in the size of the federal government and expansion of government programs

answer

d

question

The Civilian Conservation Corps a)promoted fair competition in all industries b)provided work to single young men, requiring them to send most of the money home to their families c)all of these are correct d)provided work to Americans in order to generate electrical power and control floods around the Tennessee River

answer

b

question

The Social Security Act sought to help a)the unemployable b)the unemployed c)the elderly d)all of these are correct

answer

d

question

Entry level economists typically must have a a)high school diploma b)GED c)bachelor's degree d)Ph.D.

answer

c

question

During the Cold War, the United States government spent large amounts of money a)in order to outspend the Soviet Union and end the Cold War b)on defense, including atomic warfare c)all of these are correct d)on the space program

answer

c

question

Economic knowledge a)is only sought after by the government b)is important in every job c)is only important if you are an economist d)is not important to anyone

answer

b

question

Specialization promotes efficiency of the world economy by a)increasing the availability of natural resources b)making sure the exports and imports of all countries are the same c)allowing nations to only produce the goods they produce efficiently d)bringing absolute advantage to all nations

answer

c

question

According to modern theory, it is beneficial for a country to trade a good with another country if one country has a(n) __________ in the production of that good. a)opportunity cost b)financial advantage c)comparative advantage d)absolute advantage

answer

c

question

the Hawley-Smoot Tariff is an example of a)protectionism b)infant industry c)free trade d)dumping

answer

a

question

A country has an absolute advantage when it can a)produce a good at a lower opportunity cost than another country b)produce more of a product than another country c)produce a lot of different economic products d)produce a good at a higher dollar cost than another country

answer

b

question

NAFTA instituted a free trade policy between a)Canada, Mexico, and the United States b)Europe and Africa c)all world nations d)Europe and Asia

answer

a

question

Globalization is the term used to describe the emergence of a fragmented and divisive isolationist world view. a)true b)false

answer

b

question

A tax placed on an import is a a)opportunity cost b)ration c)tariff d)quota

answer

c

question

Many economists argue that global free trade will a)result in the United States becoming poor b)cause economic problems c)create protectionism d)promote economic efficiency

answer

d

question

A country has a comparative advantage when it can a)produce a lot of different economic products b)produce a good at a lower dollar cost than another country c)produce more of a product than another country d)produce a good at a lower opportunity cost than another country

answer

d

question

A __________ dollar is able to purchase less foreign currency than a __________ dollar. a)global, non-global b)weak, strong c)strong, weak d)balanced, imbalanced

answer

b

question

Beta can produce either ten apples or three oranges. Cama can produce either twelve apples or three oranges. Which of the following is true? a)Beta has an absolute advantage in the production of apples. b)Cama has an absolute advantage in the production of apples. c)Cama has an absolute advantage in the production of oranges. d)Cama has a comparative advantage in the production of oranges

answer

b

question

A country experiences a __________ when the value of imports exceeds the value of exports. a)balance of payments b)trade surplus c)trade deficit d)balance of trade

answer

c

question

The __________ argument is based on the belief that new industries are fragile and need to be protected from foreign competition. a)national security b)quota c)infant industry d)dumping

answer

c

question

An import is a)an example of profitable trade b)an example of a production deficiency c)a good or service that is brought from a foreign country d)a good or service that is sent to a foreign country

answer

c

question

The International Monetary Fund was created in 1944 in order to a)fix all interest rates b)determine the floating exchange rates c)create comparative advantage d)manage the international monetary system of fixed exchange rates

answer

d

question

A(n) __________ is determined by the supply and demand of that currency. a)balance of trade b)floating exchange rate c)fixed exchange rate d)interest rate

answer

b

question

During his administration, President George W. Bush believed that a)foreign trade is not very important in the U.S. economy b)free trade agreements are not necessary c)participating in the world economy makes the U.S. economy stronger d)increasing trade restrictions is important to all U.S. industries

answer

c

question

The __________ is the price of a nation's currency relative to another nation's currency. a)interest rate b)floating exchange rate c)foreign exchange rate d)fixed exchange rate

answer

c

question

The __________ is the price of a nation's currency relative to another nation's currency. a)interest rate b)floating exchange rate c)foreign exchange rate d)fixed exchange rate

answer

c

question

The __________ is the price of a nation's currency relative to another nation's currency. a)interest rate b)floating exchange rate c)foreign exchange rate d)fixed exchange rate

answer

c

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