10 Essentials of Forex Trading by Martinez J PDF

By Martinez J

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Extra resources for 10 Essentials of Forex Trading

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Monetary policy refers to central bank activities that are directed toward influencing the quantity of money and credit in an economy. By contrast, fiscal 45 46             Learning Outcomes, Summary Overview, and Practice Problems policy refers to the government’s decisions about taxation and spending. The two sets of policies affect the economy via different mechanisms. Money fulfills three important functions: It acts as a medium of exchange, provides individuals with a way of storing wealth, and provides society with a convenient unit of account.

The component least likely to be included in a measurement of gross domestic product (GDP) is: A. the value of owner-occupied rent. B. the annual salary of a local police officer. C. environmental damage caused by production. 3. Which of the following conditions is least likely to increase a country’s GDP? A. An increase in net exports B. Increased investment in capital goods C. Increased government transfer payments 4. Which of the following would be included in Canadian GDP for a given year? The market value of: A.

B. influence aggregate national output. C. ensure the stability of the purchasing power of its currency. 25. Given an independent central bank, monetary policy actions are more likely than fiscal policy actions to be: A. implementable quickly. B. effective when a specific group is targeted. C. effective when combating a deflationary economy. 26. Which statement regarding fiscal policy is most accurate? A. To raise business capital spending, personal income taxes should be reduced. B. Cyclically adjusted budget deficits are appropriate indicators of fiscal policy.

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10 Essentials of Forex Trading by Martinez J


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