Inflation rate in the united states


1) If the inflation rate in the United States is greater than the inflation rate in Britain, other things held constant, the British pound will:
-Appreciate against the U.S. dollar.
-Depreciate against the U.S. dollar.
-Remain unchanged against the U.S. dollar.
-Appreciate against other major currencies.
-Appreciate against the dollar and other major currencies.

2) Which of the following statements is CORRECT?
-While the distinctions are blurring, investment banks generally specialize in lending money, whereas commercial banks generally help companies raise capital from other parties.
-A liquid security is a security whose value is derived from the price of some other "underlying" asset.
-Money market mutual funds usually invest most of their money in a well-diversified portfolio of liquid common stocks.
-Money markets are markets for long-term debt and common stocks.
-The NYSE operates as an auction market, whereas the Nasdaq is a dealer market.

 

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Finance Basics: Inflation rate in the united states
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