Exam 20: International Finance

Expansionary monetary policy lowers the:

What are the sources of a capital surplus? A capital deficit? How does a capital surplus or deficit show up in the official balance of payments accounts?

An increase in the demand for U.S.goods by foreigners increases the demand for U.S.dollars.

If the dollar per euro exchange rate rises,this means that:

When Chinese investors purchase U.S.commercial real estate,the _____ increases in the United States.

Use the following to answer questions Figure: Yuan Foreign Exchange Market for U.S.Dollars -(Figure: Yuan Foreign Exchange Market for U.S.Dollars)Based on this figure,if Americans begin to import more from China,which of the following is a possible outcome for the price of the dollar?

If the United States becomes a worse place to invest,what will happen to the current and capital accounts?

_____ are usually _____ in developing countries because of lower wages and immigration laws that prevent the free movement of labor.

All else held constant,an increase in U.S.imports will cause the U.S.current account to:

Which of the following would be recorded as a debit in the U.S.current account?

Which of the following is NOT a function of the International Monetary Fund?

A current account deficit decreases the balance of payments.

A relatively loose commitment to a floating exchange rate produces a:

If purchasing power parity holds and the nominal exchange rate is £1 for $2,then a Big Mac that costs £2 in London should cost $4 in New York.

The World Bank is the primary force behind global capitalism.

Services tend to be cheaper in real terms in poor countries than in rich countries.

The capital account measures:

A trade deficit might signal a problem of:

With a floating exchange rate,an increase in the U.S.demand for Japanese exports will cause the demand for yen to:

Higher interest rates,a stable government,and increased exports contribute to: