Transactions in currency, bank deposits and so forth
A. Tend to be insensitive to both changes in relative interest rates and the anticipated change in exchange rate.
B. Tend to be sensitive to both changes in relative interest rates and the anticipated change in exchange rate.
C. Tend to be sensitive to changes in relative interest rates but insensitive to the anticipated change in exchange rate.
D. Tend to be insensitive to changes in relative interest rates but sensitive to the anticipated change in exchange rate.
Answer:B
Transactions in currency, bank deposits and so forth
A. Tend to be insensitive to both changes in relative interest rates and the anticipated change in exchange rate. B. Tend to be sensitive to both changes in relative interest rates and the anticipated change in exchange rate. C. Tend to be sensitive to changes in relative interest rates but insensitive to the anticipated change in exchange rate. D. Tend to be insensitive to changes in relative interest rates but sensitive to the anticipated change in exchange rate.