(Answered) Multiple Choice Questions

"1) If the inflation rate in the United States is greater than the inflation rate in Britain, other things held constant, the British pound will;-Appreciate against the U.S. dollar.;-Depreciate against the U.S. dollar.;-Remain unchanged against the U.S. dollar.;-Appreciate against other major currencies.;-Appreciate against the dollar and other major currencies.;2) Which of the following statements is CORRECT?;-While the distinctions are blurring, investment banks generally specialize in lending money, whereas commercial banks generally help companies raise capital from other parties.;-A liquid security is a security whose value is derived from the price of some other ""underlying"" asset.;-Money market mutual funds usually invest most of their money in a well-diversified portfolio of liquid common stocks.;-Money markets are markets for long-term debt and common stocks.;-The NYSE operates as an auction market, whereas the Nasdaq is a dealer market."
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