TRUE OR FALSE ?

53. THE EQUILIBRIUM EXCHANGE RATE WILL CHANGE OVER TIME AS SUPPLY AND

DEMAND SCHEDULES CHANGE -

54. A COUNTRY W/ LOWER INFLATION RATE WOULD EXHIBIT A LOWER CURRENCY

VALUE

55. INTEREST RATE DIFFERENTIALS DO NOT INFLUENCE DEMAND AND SUPPLY OF

CURRENCIES AND HENCE EXCH RATES

56. REAL INTEREST RATES TAKE INTO ACCOUNT THE NOMINAL INT. RATE MINUS

INFLATION RATE (ADJUSTS FOR INFLATION)

57. RELATIVE INCOME LEVELS AFFECTS THE AMOUNT OF IMPORTS DEMANDED

58. THE CARRY TRADE IS A STRATEGY UTILIZED BY HEDGE FUNDS & OTHERS TO

SPECULATE IN F/X MARKET

59. DURING THE GLOBAL FINANCIAL CRISIS OF 2008-2009, HOUSEHO;DS AND

FINANCIAL INSTITUTIONS BORROWED TOO MUCH AND TOOK TOO MUCH RISK

60. SOVEREIGN GOVERNMENTS DO NOT HAVE THE RIGHT TO REGULATE THE

MOVEMENT OF GOODS, CAPITAL, AND PEOPLE ACROSS THEIR BORDERS

61. A COMPARATIVE ADVANTAGE EXISTS WHEN ONE CAN PRODUCE A GOOD

OR SERVICE AT A LOWER OPPORTUNITY COST THAN ANOTHER