Question 1

The Bretton Woods agreement established the gold standard.

Accepted Answer

A) True 
 B)False

Question 2

If the exchange rate has been $1.50 per British pound but now falls to $1.25 per British pound, there will be

Accepted Answer

A) more U.S.imports from Great Britain because the price of pounds has fallen 
B) more exports to Great Britain because the price of pounds has risen 
C) fewer exports to Great Britain because the price of the pound has risen 
D) more U.S.exports to Great Britain since the price of the dollar has fallen 
E) no change in either exports or imports 
A) more U.S.imports from Great Britain because the price of pounds has fallen 
B) more exports to Great Britain because the price of pounds has risen 
C) fewer exports to Great Britain because the price of the pound has risen 
D) more U.S.exports to Great Britain since the price of the dollar has fallen 
E) no change in either exports or imports

Question 3

The debit side of the current account includes the imports of

Accepted Answer

A) goods only 
B) goods and services 
C) services only 
D) services and resources only 
E) financial assets 
A) goods only 
B) goods and services 
C) services only 
D) services and resources only 
E) financial assets

Question 4

Suppose U.S.consumers start buying more English shoes and fewer U.S.shoes.What impact will this trend have on the foreign exchange market?

Accepted Answer

A) U.S.demand for foreign exchange, in general, and British pounds, in particular, will increase. 
B) U.S.demand for foreign exchange, in general, and British pounds, in particular, will decrease. 
C) U.S.demand for British pounds will increase, but the demand for foreign exchange will probably decrease. 
D) U.S.demand for British pounds will decrease, but the demand for foreign exchange will probably increase. 
E) There is no effect on foreign exchange. 
A) U.S.demand for foreign exchange, in general, and British pounds, in particular, will increase. 
B) U.S.demand for foreign exchange, in general, and British pounds, in particular, will decrease. 
C) U.S.demand for British pounds will increase, but the demand for foreign exchange will probably decrease. 
D) U.S.demand for British pounds will decrease, but the demand for foreign exchange will probably increase. 
E) There is no effect on foreign exchange.

Question 5

The current account shows international transactions in goods and services, the capital account shows international transactions involving the flow of financial assets, and the official reserve transactions account shows movement of international reserves.

Accepted Answer

A) True 
 B)False

Question 6

Which one of the following is not true?

Accepted Answer

A) An exchange rate is the price of one currency in terms of another. 
B) An exchange rate is the means by which the price of a good in one country is translated into the price to the buyer in another country. 
C) The cost of a foreign good in dollars will depend on the current exchange rate. 
D) The exchange rate will affect the willingness of foreign buyers and sellers to trade with each other. 
E) The exchange rate is the price of a currency in terms of another currency for exchanges of goods and services but not for financial transactions. 
A) An exchange rate is the price of one currency in terms of another. 
B) An exchange rate is the means by which the price of a good in one country is translated into the price to the buyer in another country. 
C) The cost of a foreign good in dollars will depend on the current exchange rate. 
D) The exchange rate will affect the willingness of foreign buyers and sellers to trade with each other. 
E) The exchange rate is the price of a currency in terms of another currency for exchanges of goods and services but not for financial transactions.

The Bretton Woods agreement established the gold standard.

If the exchange rate has been $1.50 per British pound but now falls to $1.25 per British pound, there will be

The debit side of the current account includes the imports of

Suppose U.S.consumers start buying more English shoes and fewer U.S.shoes.What impact will this trend have on the foreign exchange market?

The current account shows international transactions in goods and services, the capital account shows international transactions involving the flow of financial assets, and the official reserve transactions account shows movement of international reserves.

Which one of the following is not true?

The Art and Science of Economic Analysis

Appendix--Understanding Graphs

Economic Tools and Economics Systems

Economic Decision Makers

Demand, Supply, and Markets

Elasticity of Demand and Supply

Appendix--Price Elasticity and Tax Incidence

Consumer Choice and Demand

Appendix--Indifference Curves and Utility Maximization

Production and Cost in the Firm

A--Perfect Competition

B--Perfect Competition

A--Monopoly

B--Monopoly

Monopolistic Competition and Oligopoly

Resource Markets

Labor Markets and Labor Unions

Capital, Interest, and Corporate Finance

Transaction Costs, Imperfect Information, and Behavioral Economics

Economic Regulation and Antitrust Policy

Public Goods and Public Choice

Externalities and the Environment

Income Distribution and Poverty

International Trade

Economic Development

Filters

Exam 20: International Finance

The Bretton Woods agreement established the gold standard.

If the exchange rate has been $1.50 per British pound but now falls to $1.25 per British pound, there will be

The debit side of the current account includes the imports of

Suppose U.S.consumers start buying more English shoes and fewer U.S.shoes.What impact will this trend have on the foreign exchange market?

The current account shows international transactions in goods and services, the capital account shows international transactions involving the flow of financial assets, and the official reserve transactions account shows movement of international reserves.

Which one of the following is not true?

The Art and Science of Economic Analysis

Appendix--Understanding Graphs

Economic Tools and Economics Systems

Economic Decision Makers

Demand, Supply, and Markets

Elasticity of Demand and Supply

Appendix--Price Elasticity and Tax Incidence

Consumer Choice and Demand

Appendix--Indifference Curves and Utility Maximization

Production and Cost in the Firm

A--Perfect Competition

B--Perfect Competition

A--Monopoly

B--Monopoly

Monopolistic Competition and Oligopoly

Resource Markets

Labor Markets and Labor Unions

Capital, Interest, and Corporate Finance

Transaction Costs, Imperfect Information, and Behavioral Economics

Economic Regulation and Antitrust Policy

Public Goods and Public Choice

Externalities and the Environment

Income Distribution and Poverty

International Trade

Economic Development

Filters