Exam 19: International Finance

When the exchange rate between the U.S.dollar and the euro changes from 1.30 euros per dollar to 1.00 euro per dollar the dollar has ________ and European goods have become ________ to people in the United States so that quantity of U.S.dollars supplied ________.

The official settlements account balance is

In 2008, the current account balance was -$706 billion and the capital account balance was +$711 billion.Therefore, the official settlements account balance was ________ and the balance of all payments accounts summed was ________.

U.S.official reserves are

The figure above shows supply curves of dollars in the foreign exchange market. -Based on the figure above, which of the following factors could lead the supply curve to shift rightward from S₀ to S₂?

For many years, U.S.investment has exceeded savings and government expenditure has exceeded taxes. These imbalances (deficits) have been financed through international ________ by the United States as shown by the surplus on the balance of payments ________ account.

When the U.S.current account has a deficit, international payments from the United States ________ U.S.international receipts.To cover the current account deficit, there must be a ________ in the combined capital and official settlements accounts.

Which of the following is a balance of payments account? i. current account ii. past account iii. capital account

To appreciate the U.S.dollar against the Mexican peso, in the foreign exchange market the Fed could ________ dollars and ________ pesos.

Foreign investment in the United States and U.S.investment abroad is recorded in the

Assume the exchange rate is 1 U.S.dollar equals 1.10 Canadian dollars.If purchasing power parity is correct, a DVD that has a price of $10 in Rochester, New York, in Canada has a price of ________ Canadian dollars.

Yesterday, the dollar was trading in the foreign exchange market at 1.10 euros per dollar.Today, the dollar is trading at 1.05 euros per dollar.The dollar has ________ and a possible reason for the change is ________ in the U.S.interest rate.

In the foreign exchange market, how does a fall in the U.S.interest rate affect the supply of dollars?

During the last year, foreign investment in a country was $500 billion and the country's investment abroad was $600 billion.Which of the following statements is true?

According to the U.S.balance of payments accounts in 2008, U.S.international borrowing is used for

The official settlements account is the record of

When the U.S.interest rate ________ relative to foreign interest rates, the supply of dollars ________ and the supply curve of dollars shifts rightward.

The foreign exchange rate is defined as the

If the exchange rate changes from 1.00 euro per dollar to 1.10 euro per dollar, the dollar has

The current account is the record of