Multiple Choice Questions

The real exchange rate is the relative price of U.S produced goods and services to foreign produced goods and services. It is a measure of the quantity of the real GDP of other countries that a unit of U.S. real GDP buys.
  • What is the real exchange rate?
  • What is the exchange rate?
  • What is the current account?
  • What is capital and financial account
The fall in the exchange rate decreases the quantity of U.S dollars supplied. If we had depreciation of the U.S dollar.
  • What does an increase in the U.S demand for imports do to the supply and value of the dollar?
  • What would cause currency appreciation?
  • What does a negative balance in the capital and financial account mean?
  • What would cause the supply of dollars to decrease in the foreign exchange market?
The current account records receipts from exports of goods and services sold abroad, payments for imports of goods and services from abroad, net interest income paid abroad and net transfers abroad. The current account balance equals the sum of exports minus imports, net interest income and net transfers.
  • What is the real exchange rate?
  • What is capital and financial account
  • What is the exchange rate?
  • What is the current account?
When the demand for the U.S dollar goes down. The decrease in the exchange rate.
  • What is capital and financial account
  • What is currency appreciation or depreciation
  • When does currency depreciation occur?
  • What would cause currency appreciation?
The larger the value of U.S imports, the larger is the quantity of U.S. dollars supplied in the foreign exchange market
  • What would cause the supply of dollars to decrease in the foreign exchange market?
  • What does an increase in the U.S demand for imports do to the supply and value of the dollar?
  • When does currency depreciation occur?
  • What does a negative balance in the capital and financial account mean?
A Debtor nation is a country that during its entire history has borrowed more from the rest of the world than it has lent to it
  • What does an increase in the U.S demand for imports do to the supply and value of the dollar?
  • What is the real exchange rate?
  • What does a negative balance in the capital and financial account mean?
  • What does a debtor nation mean?
An increase in world demand for U.S exports increases the demand for U.S dollars. A rise in the exchange rate. U.S import demand increases. The U.S interest rate differential falls, the expected future exchange rate falls. The Demand for U.S dollar goes up.
  • What would cause currency appreciation?
  • What is the current account?
  • What would cause the supply of dollars to decrease in the foreign exchange market?
  • What is the exchange rate?
A countries balance of payments accounts records its international trading, borrowing, and lending in three accounts: Current account, Capital and financial account and official settlements account.
  • What would cause currency appreciation?
  • What is capital and financial account
  • What is currency appreciation or depreciation
  • What is included in the balance of payments accounts?
The capital and financial account records foreign investment in the United States minus U.S investment abroad. U.S capital in foreign countries like Mcdonalds in china.
  • What is included in the balance of payments accounts?
  • What is the real exchange rate?
  • What is the current account?
  • What is capital and financial account
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Multiple Choice Questions
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