A sudden expectation of future appreciation of the dollar causes funds to flow ______ the U.S. and the dollar to actually __________.
out of, appreciate |
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into, depreciate |
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out of, depreciate |
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into, appreciate |
Non-transactions deposits are different from transactions deposits in that
transactions deposits have unlimited check writing privileges while non-transactions deposits do not |
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transactions deposits have limited check writing privileges while non-transactions deposits have unlimited check writing privileges |
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transactions deposits have no check writing privileges while non-transactions deposits have limited check writing privileges |
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transactions deposits have no check writing privileges while non-transactions deposits do |
(b) Into, depreciate
Since, the dollar is about to appreciate, people will start investing in US for capital gains. Due to increase in demand of dollars, the exchange rate of dollar will rise which will actually depreciate the dollars.
(a) transactions deposits have unlimited check writing privileges while non-transactions deposits do not
Transactions (checkable) deposits are deposits on which checks can be written with unlimited checking privileges while Non-transactions deposits are the largest source of bank funds today. MMDAs offer limited check-writing privileges (no more than six transactions per month.
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