Q10. Mexico eliminates a high tariff on a major imported item. Under a system of flexible exchange rates, this action would tend to:
A) decrease the balance of trade deficit of Mexico. B) cause the peso to appreciate in value. C) cause the peso to depreciate in value.
Q11. Which of the following is least likely to affect exchange rates? Differential: A) income growth. B) spending by firms. C) inflation rates.
Q12. If real interest rates in the U.S. are higher than the real interest rates of U.S. trading partners, what will tend to happen to the foreign exchange value of the dollar? The dollar will most likely: A) appreciate. B) remain steady. C) depreciate.
Q13. Which of the following would be most likely to cause a nation’s currency to depreciate relative to its trading partners?
A) A decrease in the nation's domestic rate of inflation. B) An increase in the nation's domestic rate of inflation. C) An increase in inflation rates of the nation's trading partners.
Q14. Assume that one year ago, the Canadian Dollar (CAD) was quoted at Australian Dollar (AUD) 0.82500 and that today the CAD is trading at AUD 0.8011. Assume that Canada and Australia are trading partners. Which of the following statements is least likely? Over the past year, the Canadian:
A) government undertook an unanticipated expansionary monetary policy action. B) economy grew at a faster rate than the Australian economy. C) government recently undertook an unanticipated expansionary fiscal policy action.
Q15. Under a system of flexible exchange rates, which one of the following is most likely to cause a nation’s currency to appreciate on the foreign exchange market? A) An increase in the nation’s domestic rate of inflation. B) An increase in real foreign interest rates. C) A decrease in the nation’s domestic rate of inflation.
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发表于 2009-1-13 14:24
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