Q6. If there is an excess demand for dollars by Croatians, Croatians will least likely:

A)     sell dollars for kunas.

B)     sell kunas for dollars.

C)     make the dollar appreciate.

Q7. A German parts manufacturer builds a manufacturing plant in the United States. In the foreign exchange market, this action creates:

A)   demand for dollars and a supply of euros.

B)   supply of both dollars and euros.

C)   supply of dollars and a demand for euros.

Q8. If the U.S. dollar appreciates relative to the Elbonian peso, it becomes:

A)   more expensive for U.S. citizens to buy Elbonian goods.

B)   more expensive for foreigners to buy U.S. goods.

C)   cheaper for foreigners to buy U.S. goods.

Q9. An English textile manufacturer builds a plant in the United States. In the foreign exchange market, this action creates a:

A)   demand for dollars and a supply of pounds.

B)   supply of dollars and a demand for pounds.

C)   supply of both dollars and pounds.

Q10. A U.S. tourist planning to visit Germany exchanges $500 for euros at a rate of $0.95/

答案和详解如下：

Q6. If there is an excess demand for dollars by Croatians, Croatians will least likely:

A)     sell dollars for kunas.

B)     sell kunas for dollars.

C)     make the dollar appreciate.

Correct answer is A)

If there is excess demand for dollars by Croatians, they will sell kunas and buy dollars thereby making the dollar appreciate relative to the kuna.

Q7. A German parts manufacturer builds a manufacturing plant in the United States. In the foreign exchange market, this action creates:

A)   demand for dollars and a supply of euros.

B)   supply of both dollars and euros.

C)   supply of dollars and a demand for euros.

Correct answer is A)

The German manufacturer will need to purchase U.S. assets, labor, etc., to build the plant. In order to pay the workers, they will need to sell euros and buy dollars, thus increasing the supply of euros and increasing the demand for dollars.

Q8. If the U.S. dollar appreciates relative to the Elbonian peso, it becomes:

A)   more expensive for U.S. citizens to buy Elbonian goods.

B)   more expensive for foreigners to buy U.S. goods.

C)   cheaper for foreigners to buy U.S. goods.

Correct answer is B)

Appreciation is an increase in the value of a domestic currency, relative to foreign currencies, leading to increased purchasing power of the domestic currency for foreign goods. As a result of appreciation of a domestic currency, domestic goods become more expensive to foreigners.

Q9. An English textile manufacturer builds a plant in the United States. In the foreign exchange market, this action creates a:

A)   demand for dollars and a supply of pounds.

B)   supply of dollars and a demand for pounds.

C)   supply of both dollars and pounds.

Correct answer is A)

The English manufacturer will need dollars to pay for the plant. Dollars will be bought and pounds sold, increasing the demand for dollars and increasing the supply of pounds.

Q10. A U.S. tourist planning to visit Germany exchanges $500 for euros at a rate of $0.95/

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