Q6. How would an unanticipated shift to a more expansionary monetary policy in the United States typically affect the demand for foreign currencies and the value of the dollar? Demand forForeign Currencies Foreign ExchangeValue of the Dollar
A) Increase No change B) No change Decrease C) Increase Decrease
Q7. If the domestic inflation rate is lower than the foreign rate of inflation: A) the domestic currency will depreciate relative to the foreign currency. B) the domestic currency will appreciate relative to the foreign currency. C) the foreign currency will appreciate relative to the domestic currency.
Q8. An analyst has the following expectations for three economies over the coming year:
| Dacia
| Epirus
| Noricum
| Income growth rate | 3% | 5% | 3% | Inflation rate | 2% | 2% | 5% | Domestic real interest rate | 4% | 3% | 4% |
Based on these forecasts, how should the analyst predict the currency of Dacia will change in value versus the currencies of Epirus and Noricum? Dacia/Epirus
Dacia/Noricum
A) Depreciate Appreciate B) Appreciate Depreciate C) Appreciate Appreciate
Q9. Which of the following would be most likely to cause a nation’s currency to depreciate? A) Slow growth of income relative to one’s trading partners. B) Domestic real interest rates that are lower than those of other countries. C) A rate of inflation that is lower than that of one’s trading partners.
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发表于 2009-1-13 14:13
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