Q1. Under a system of flexible exchange rates, which one of the following is more likely to cause a nation's currency to appreciate on the foreign exchange market? A) A domestic inflation rate lower than the nation's trading partners. B) A decrease in real domestic interest rates. C) A domestic inflation rate higher than the nation's trading partners.
Q2. The U.S. imposes a high tariff on a major imported item. Under a system of flexible exchange rates, this would tend to:
A) cause the dollar to appreciate in value. B) cause the dollar to depreciate in value. C) increase the balance of trade deficit of the U.S.
Q3. A Japanese automobile manufacturer builds an automobile plant in the U.S. In the foreign exchange market, this action creates a:
A) supply of dollars and a demand for yen. B) demand for dollars and a surplus of yen. C) demand for both dollars and yen.
Q4. Which of the following factors is least likely to affect foreign exchange rates? A) The government sets a price floor for the price of wheat. B) Income growth. C) Real interest rates.
Q5. If incomes in the U.S. are increasing rapidly compared to those in Mexico, how will the value of the U.S. dollar and the Mexican peso move relative to each other? U.S. Dollar Peso
A) Depreciate Appreciate B) Appreciate Depreciate C) Depreciate No change
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发表于 2009-1-13 14:12
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