Answer:
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Consumers who overuse credit run the risk of late payments, low credit scores, and even bankruptcy.
Answer:
The statement is True
Explanation:
A higher price level is a term that describes an economic condition in which more money is required to purchase a given amount of goods and services, at a given period, tland this leads to inflation overtime.
However, with a higher expected price level, it implies that a decline in the real value of a constant nominal amount of money balances is expected. Thus, there is an high tendency among people to substitute away from holding money and toward holding non-liquid assets whose prices may rise with the in the foreseeable future.
Answer: A. Currency traders who believe that the value of the ruble in the future will be less than its value today.
Explanation:
In the foreign exchange market, currencies are traded at different prices. From the options given in the question, the correct option is option A (Currency traders who believe that the value of the rubleruble in the future will be less than its value today).
When the currency traders believe that the value of the rubel is going to depreciate in the future, they will start selling the rubels and this will lead to a decrease in the demand for it because it will depreciate. Here, the supply will increase but the demand will reduce.
A depreciation of the U.S dollar rise the price of U.S. imports, and fall in the price of U.S exports.
In a floating exchange rate system, currency depreciation refers to the decline in value of a nation's currency in relation to one or more foreign reference currencies.
Currency depreciation can happen for a variety of causes, including weak economic fundamentals, interest rate differences, political unrest, investor risk aversion, etc.
The exchange rate affects whether there is a trade surplus or deficit; a depreciated domestic currency encourages exports and raises the cost of imports. A strong native currency, on the other hand, makes imports more affordable and hinders exports.
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