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Questions # 321:

An olive oil producer in Macedonia is arranging for shipment of its product to an international distributor. To support this activity, the company arranges for export financing because:

Options:

A.

the currency of the financing is different from the currency of the activity being financed.

B.

the time required to obtain approval is less than for commercial financing.

C.

no government involvement is required.

D.

the interest rate is lower than rates available from commercial sources.

Questions # 322:

If the Federal Reserve wanted to stimulate a sluggish economy, it could do so by:

Options:

A.

increasing reserve requirements.

B.

buying U.S. government securities in the open market.

C.

selling U.S. government securities in the open market.

D.

increasing margin requirements.

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