Exam 33: Exchange Rates and the Balance of Payments

An example of a unilateral transfer is

The sum of the current account, the capital account, and the official reserve transaction account is

Under a flexible exchange rate system, one factor that does NOT directly affect rates of exchange is

-Refer to the above table. The capital account balance is

A market in which national currencies are traded by households, firms and governments, is referred to as a(n)

The term "flexible exchange rates" refers to

-Refer to the above figure. Suppose E is the original equilibrium. Japanese residents have increased their demand for U.S. goods. This will lead to

If there is an outward shift in U.S. demand for French goods, the result will be

Under the gold standard, because all currencies had values fixed in units of gold,

An increase in the U.S. demand for Japanese yen causes

Current account transactions are payments and gifts that are related to the purchase or sale of

One problem that investors in foreign countries face is the possibility of a decline in the value of that foreign country's currency. Which of the following would be an effective way to offset this problem?

If there is unrest in the Middle East that threatens the economic stability of Saudi Arabia, the

Which agreement was signed in 1944 with the purpose of creating a new international payment system?

The difference between exports and imports of goods is the

An example of a deficit item on the U.S. balance of payments is

To know whether a particular situation for a family, business, or government involves an equilibrium or not, one must

An appreciation of the U.S. dollar relative to the Japanese yen causes

If the Japanese yen depreciates against the U.S. dollar

Suppose the U.S. inflation rate falls while the inflation rate among the members of the European Monetary Union (EMU) holds constant. Other things equal, what will happen in the balance of payments accounts?