Question 1

The president of the World Bank is historically from:

Accepted Answer

A)  the United States. 
B)  Europe. 
C)  India. 
D)  China. 
A)  the United States. 
B)  Europe. 
C)  India. 
D)  China.

Question 2

A dirty or managed float is:

Accepted Answer

A)  a yearly summary of all the economic transactions between residents of one country and residents of the rest of the world. 
B)  the sum of the balance of trade,net income on capital held abroad,and net transfer payments. 
C)  the price of one currency in another currency. 
D)  a currency whose value is not pegged,but governments will intervene extensively in the market to keep the value within a certain range. 
A)  a yearly summary of all the economic transactions between residents of one country and residents of the rest of the world. 
B)  the sum of the balance of trade,net income on capital held abroad,and net transfer payments. 
C)  the price of one currency in another currency. 
D)  a currency whose value is not pegged,but governments will intervene extensively in the market to keep the value within a certain range.

Question 3

_____ in the U.S.dollar will cause U.S._____ to _____ in the short run.

Accepted Answer

A)  Appreciation;aggregate demand;increase 
B)  Depreciation;aggregate demand;increase 
C)  Appreciation;aggregate supply;decrease 
D)  Depreciation;aggregate supply;decrease 
A)  Appreciation;aggregate demand;increase 
B)  Depreciation;aggregate demand;increase 
C)  Appreciation;aggregate supply;decrease 
D)  Depreciation;aggregate supply;decrease

Question 4

Increases in the U.S.capital surpluses since 1980s were caused by increases in:

Accepted Answer

A)  current account deficits. 
B)  American saving rates. 
C)  the balance of payments. 
D)  U.S.official reserves. 
A)  current account deficits. 
B)  American saving rates. 
C)  the balance of payments. 
D)  U.S.official reserves.

Question 5

If the Bangladeshi taka depreciates against the Japanese yen,this means that the Japanese yen has appreciated against the Bangladeshi taka.

Accepted Answer

A) True 
 B)False

Question 6

The Japanese yen is the main currency held in reserve by other nations.

Accepted Answer

A) True 
 B)False

Question 7

The purchasing power parity theorem implies that changes in currency markets have no effects on real exchange rates.

Accepted Answer

A) True 
 B)False

Question 8

An exchange rate depreciation is:

Accepted Answer

A)  an increase in the price of one currency in terms of another currency. 
B)  a decrease in the price of a currency in terms of another currency. 
C)  the rate at which you can exchange one currency for another. 
D)  the rate at which you can exchange the goods and services of one country for the goods and services of another. 
A)  an increase in the price of one currency in terms of another currency. 
B)  a decrease in the price of a currency in terms of another currency. 
C)  the rate at which you can exchange one currency for another. 
D)  the rate at which you can exchange the goods and services of one country for the goods and services of another.

Question 9

In the long run,an increase in the growth rate of the money supply causes _____ in the real exchange rate and _____ in the real GDP growth rate.

Accepted Answer

A)  an increase;an increase 
B)  a decrease;a decrease 
C)  an increase;a decrease 
D)  no change;no change 
A)  an increase;an increase 
B)  a decrease;a decrease 
C)  an increase;a decrease 
D)  no change;no change

The president of the World Bank is historically from:

A dirty or managed float is:

___ in the U.S.dollar will cause U.S._ to ___ in the short run.

Increases in the U.S.capital surpluses since 1980s were caused by increases in:

If the Bangladeshi taka depreciates against the Japanese yen,this means that the Japanese yen has appreciated against the Bangladeshi taka.

The Japanese yen is the main currency held in reserve by other nations.

The purchasing power parity theorem implies that changes in currency markets have no effects on real exchange rates.

An exchange rate depreciation is:

In the long run,an increase in the growth rate of the money supply causes _ in the real exchange rate and _ in the real GDP growth rate.

The Big Ideas

The Power of Trade

Supply and Demand

Equilibrium- How Supply and Demand

Price Ceilings and Floors

GDP and the Measurement of Progress

The Wealth of Nations and Economic Growth

Growth,capital Accumulation

Saving,investment,and the Financial System

Stock Markets and Personal Finance

Unemployment and Labor Force Participation

Inflation and the Quantity Theory of Money

Business Fluctuations

Transmission and Amplification Mechanisms

The Federal Reserve System

Monetary Policy

The Federal Budget- Taxes and Spending

Fiscal Policy

International Trade

Political Economy and Public Choice

Filters

Exam 20: International Finance

The president of the World Bank is historically from:

A dirty or managed float is:

_____ in the U.S.dollar will cause U.S._____ to _____ in the short run.

Increases in the U.S.capital surpluses since 1980s were caused by increases in:

If the Bangladeshi taka depreciates against the Japanese yen,this means that the Japanese yen has appreciated against the Bangladeshi taka.

The Japanese yen is the main currency held in reserve by other nations.

The purchasing power parity theorem implies that changes in currency markets have no effects on real exchange rates.

An exchange rate depreciation is:

In the long run,an increase in the growth rate of the money supply causes _____ in the real exchange rate and _____ in the real GDP growth rate.

The Big Ideas

The Power of Trade

Supply and Demand

Equilibrium- How Supply and Demand

Price Ceilings and Floors

GDP and the Measurement of Progress

The Wealth of Nations and Economic Growth

Growth,capital Accumulation

Saving,investment,and the Financial System

Stock Markets and Personal Finance

Unemployment and Labor Force Participation

Inflation and the Quantity Theory of Money

Business Fluctuations

Transmission and Amplification Mechanisms

The Federal Reserve System

Monetary Policy

The Federal Budget- Taxes and Spending

Fiscal Policy

International Trade

Political Economy and Public Choice

Filters

___ in the U.S.dollar will cause U.S._ to ___ in the short run.

In the long run,an increase in the growth rate of the money supply causes _ in the real exchange rate and _ in the real GDP growth rate.