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6. a government may its currency to correct its balance-of-payment conditions.

a. regulate
b. recenter
c. devalue
d. reconvert

7. a(n) is a federal- or state- chartered financial institution accepting deposits that it uses to make loans and earn profits.

a. credit union
b. mutual savings bank
c. savings and loan association
d. commercial bank

8. the nation's central bank is

a. chase manhattan
b. citicorp
c. nationsbank
d. the federal reserve

9. are companies that pool investments from individuals and organizations to purchase a portfolio stock, bonds, and other securities

a. stock companies
b. stock exchangers
c. brokers
d. mutual funds

10. which of the following best describes the portability characteristic of money?

a. it allows people to measure the relative value of goods and services.
b. it is light and easy to handle
c. it neither dies not spoils and, if it wears out, it can be replaced.
d. units of money can be matched with the value of goods

6. C Devalue

7. D. Commercial bank

8. D. The Federal Reserve

9. D. Mutual funds

10. B. it is light and easy to handle

Explanation:

6. Devaluation of currency is the deliberate reduction (by the monetary authorities) in the value of a domestic currency vis-a-vis foreign currencies. What this does is that it make export goods cheaper and import goods more expensive. It is foreign exchange policy implemented when the government wants to increase export and reduce import thereby correcting her balance of payment position. Balance of payment is the monetary record of a country's transaction with the rest of the world. It is unfavourable  when import value exceed export value.

2.  A commercial bank accepts deposit from the public and uses these deposits to earn profit by giving out loans on interest. It is state or federal chartered because it is authorized to carry out these activities. Credit Union is a non-profit making organisation.

8. The Federal Reserve is the apex bank in a country. It is responsible for designing monetary policies and regulating the activities of other banks in the country. Thus, it also referred to as central bank

9. Mutual funds are companies that bring together money or investments from people and invest these pooled resources. These pooled resources can be invested in bonds, stocks, other financial assets etc collectively regarded as portfolio.

10. The portability characteristics of money means that money can be moved from place to place during transactions. It can be easily carried, light and easy to handle.  

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