Q16. When a country’s monetary authority increases the money supply, a unit of money:
A) gains value both in terms of the domestic goods it can buy and in terms of the foreign currency it can buy. B) gains value in terms of the domestic goods it can buy but loses value in terms of the foreign currency it can buy. C) loses value both in terms of the domestic goods it can buy and in terms of the foreign currency it can buy.
Q17. Which of the following is least likely to cause a country's currency to depreciate? A) Faster growth of imports relative to exports. B) Domestic real interest rates are less than those abroad. C) Slow growth of income relative to one's trading partners.
Q18. A country’s currency will appreciate when its: A) capital account is in surplus but not changing. B) imports rise in relation to its exports. C) exports rise in relation to its imports.
Q19. If increased borrowing by the government drives up the real interest rate in the United States, then:
A) the U.S. dollar will depreciate in the foreign exchange market. B) U.S. exports will expand relative to imports. C) an inflow of loanable funds from abroad will occur.
Q20. Which of the following is least likely to affect the appreciation or depreciation of a nation’s currency? A) Consumers substituting one product for another. B) Differential income growth. C) Inflation rates within a country.
Q21. The factor most likely to cause a nation's currency to appreciate on the foreign exchange market is:
A) an increase in the nation's foreign investment (assets purchased from foreigners). B) an increase in real interest rates in other countries. C) an increase in exports relative to imports.
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发表于 2009-1-13 14:25
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