Question 1

​Holding other things constant,if the Japanese Yen,depreciates,it makes the imports to Japan

Accepted Answer

A) ​More expensive for Japanese customer 
B) Less expensive for Japanese customers 
C) Neither more or less expensive for importers 
D) ​None of the above 
A) ​More expensive for Japanese customer 
B) Less expensive for Japanese customers 
C) Neither more or less expensive for importers 
D) ​None of the above A

Question 2

​In the market for Canadian dollars measured in US dollars,if the price of a US dollar is 1.10 Canadian dollars,a Canadian dollar is

Accepted Answer

A) ​1.10 US dollars 
B) 1 US dollar 
C) 0.91 cents US 
D) ​0.99 cents US 
A) ​1.10 US dollars 
B) 1 US dollar 
C) 0.91 cents US 
D) ​0.99 cents US C

Question 3

​A lawn mower costs $500 in the US and 8188 Mexican Pesos in Mexico.The current exchange rate is 1USD=12.97MXN.At this rate,

Accepted Answer

A) ​The good costs more in the US 
B) The good costs more in Mexico 
C) The good costs the same across the two countries 
D) ​None of the above 
A) ​The good costs more in the US 
B) The good costs more in Mexico 
C) The good costs the same across the two countries 
D) ​None of the above B

Question 4

Holding other things constant,a decrease in the inflation rate in the US compared to the Canadian economy will cause the demand for the Canadian dollar to _____________ and the supply to __________.​

Accepted Answer

A) ​Increase;decrease 
B) Increase,increase 
C) Decrease;Increase 
D) ​Decrease;Decrease 
A) ​Increase;decrease 
B) Increase,increase 
C) Decrease;Increase 
D) ​Decrease;Decrease

Question 5

​A Swiss consumer wants to buy an American car.The exchange rate is 1USD=0.89CHF (Swiss Francs).The car costs $10,000.How much would the car cost him in Swiss Francs?

Accepted Answer

A) ​12,000 Francs 
B) 11,600Francs 
C) 8,900 Francs 
D) ​7,500 Francs 
A) ​12,000 Francs 
B) 11,600Francs 
C) 8,900 Francs 
D) ​7,500 Francs

Question 6

John wants to buy a new lawn mower.He can either buy it in the US and pay $500 or buy it in Mexico and pay 6188 Mexican Pesos.At the exchange rate of 1 Mexican Peso=0.771US$,ignoring any other costs,he would​

Accepted Answer

A) ​Prefer buying in the US 
B) Prefer buying in Mexico 
C) Be indifferent about where he buys his television 
D) ​None of the above 
A) ​Prefer buying in the US 
B) Prefer buying in Mexico 
C) Be indifferent about where he buys his television 
D) ​None of the above

Question 7

​If the price of a Canadian dollar went from 0.95 US dollars to 0.98 US dollars,we would say that the Canadian dollar has

Accepted Answer

A) ​Appreciated 
B) Depreciated 
C) Not changed in value 
D) ​None of the above 
A) ​Appreciated 
B) Depreciated 
C) Not changed in value 
D) ​None of the above

Question 8

​In the market for Canadian dollars measured in US dollars,the demand for US dollars is

Accepted Answer

A) ​The supply of Canadian dollars 
B) The demand for Canadian Dollars 
C) The supply of US dollars 
D) ​None of the above 
A) ​The supply of Canadian dollars 
B) The demand for Canadian Dollars 
C) The supply of US dollars 
D) ​None of the above

Question 9

​If the Canadian dollar depreciates,holding other things constant,it makes Canadian imports

Accepted Answer

A) ​More expensive for Canadian customers 
B) Less expensive for Canadian customers 
C) Neither more or less expensive for importers 
D) ​None of the above 
A) ​More expensive for Canadian customers 
B) Less expensive for Canadian customers 
C) Neither more or less expensive for importers 
D) ​None of the above

Question 10

​An individual in the US wants to buy office equipment from England which costs 2,000 pounds.If the exchange rate is 1pound=$1.9,how much will the office equipment cost him in dollar terms?

Accepted Answer

A) ​$2,000 
B) $2,800 
C) $3,800 
D) ​$1052 
A) ​$2,000 
B) $2,800 
C) $3,800 
D) ​$1052

Question 11

​If a panic causes Indian depositors to withdraw their money from Japanese banks,it would cause the Japanese Yen to ___________,since the supply of Yen has__________

Accepted Answer

A) ​Appreciate;Decrease 
B) Depreciate;Decrease 
C) Appreciate,Increase 
D) ​Depreciate;Increase 
A) ​Appreciate;Decrease 
B) Depreciate;Decrease 
C) Appreciate,Increase 
D) ​Depreciate;Increase

Question 12

​A widget costs $1000 in the US and CAD$1200 in Canada.The current exchange rate is 1USD=1.09CAD.At this rate,

Accepted Answer

A) ​The good costs more in the US 
B) The good costs more in Canada 
C) The good costs the same across the two countries 
D) ​None of the above 
A) ​The good costs more in the US 
B) The good costs more in Canada 
C) The good costs the same across the two countries 
D) ​None of the above

Question 13

​Holding other things constant,if the US dollar appreciates,it makes the US exports

Accepted Answer

A) ​Less attractive to foreigners 
B) More attractive to foreigners 
C) Neither more nor less attractive to foreigners 
D) ​None of the above 
A) ​Less attractive to foreigners 
B) More attractive to foreigners 
C) Neither more nor less attractive to foreigners 
D) ​None of the above

Question 14

Russian Rubles
Because of sanctions over their involvement in Ukraine in 2014,the Bank of Russia has raised its benchmark interest rate from 8% to 9.5%.What affect does this have on the exchange rate for the Russian Rubble versus the Euro?

Accepted Answer

This would make investing in Russia more

Question 15

​Holding other things constant,if the US dollar depreciates,it makes the US exports

Accepted Answer

A) ​Less attractive to foreigners 
B) More attractive to foreigners 
C) Neither more nor less attractive to foreigners 
D) ​None of the above 
A) ​Less attractive to foreigners 
B) More attractive to foreigners 
C) Neither more nor less attractive to foreigners 
D) ​None of the above

Question 16

​Holding other things constant,a decrease in the inflation rate in the US compared to the Canadian economy may cause the demand for the US dollar to _____________ and the supply to __________.

Accepted Answer

A) ​Increase;decrease 
B) Increase,increase 
C) Decrease;Increase 
D) ​Decrease;Decrease 
A) ​Increase;decrease 
B) Increase,increase 
C) Decrease;Increase 
D) ​Decrease;Decrease

Question 17

​John wants to buy a new television set.He can either buy it in the US and pay $1200 or buy it in Canada and pay CAD$1300.At the exchange rate of 1CA$=US$0.92,ignoring any other costs,he would

Accepted Answer

A) ​Prefer buying in the US 
B) Prefer buying in Canada 
C) Be indifferent about where he buys his television 
D) ​None of the above 
A) ​Prefer buying in the US 
B) Prefer buying in Canada 
C) Be indifferent about where he buys his television 
D) ​None of the above

Question 18

An individual in the England wants to buy office equipment from England which costs $2,000.If the exchange rate is 1pound=$1.9,how much will the office equipment cost him in pounds?​

Accepted Answer

A) ​2,000 pounds 
B) 1,800 pounds 
C) 3,800 pounds 
D) ​1,053 pounds 
A) ​2,000 pounds 
B) 1,800 pounds 
C) 3,800 pounds 
D) ​1,053 pounds

Question 19

​In the market for Canadian dollars measured in US dollars,the demand for Canadian dollars is

Accepted Answer

A) ​The supply of Canadian dollars 
B) The demand for US Dollars 
C) The supply of US dollars 
D) ​None of the above 
A) ​The supply of Canadian dollars 
B) The demand for US Dollars 
C) The supply of US dollars 
D) ​None of the above

Question 20

​A weaker peso,relative to the US dollar,causes the demand for US exports to Mexico to______ and the demand for US imports from Mexico to______

Accepted Answer

A) ​Increase;Decrease 
B) Decrease;Increase 
C) Increase;Increase 
D) ​Decrease;Decrease 
A) ​Increase;Decrease 
B) Decrease;Increase 
C) Increase;Increase 
D) ​Decrease;Decrease

Exam 10: Foreign Exchange, Trade, and Bubbles

​Holding other things constant,if the Japanese Yen,depreciates,it makes the imports to Japan

​In the market for Canadian dollars measured in US dollars,if the price of a US dollar is 1.10 Canadian dollars,a Canadian dollar is

​A lawn mower costs $500 in the US and 8188 Mexican Pesos in Mexico.The current exchange rate is 1USD=12.97MXN.At this rate,

Holding other things constant,a decrease in the inflation rate in the US compared to the Canadian economy will cause the demand for the Canadian dollar to _____________ and the supply to __________.​

​A Swiss consumer wants to buy an American car.The exchange rate is 1USD=0.89CHF (Swiss Francs).The car costs $10,000.How much would the car cost him in Swiss Francs?

John wants to buy a new lawn mower.He can either buy it in the US and pay $500 or buy it in Mexico and pay 6188 Mexican Pesos.At the exchange rate of 1 Mexican Peso=0.771US$,ignoring any other costs,he would​

​If the price of a Canadian dollar went from 0.95 US dollars to 0.98 US dollars,we would say that the Canadian dollar has

​In the market for Canadian dollars measured in US dollars,the demand for US dollars is

​If the Canadian dollar depreciates,holding other things constant,it makes Canadian imports

​An individual in the US wants to buy office equipment from England which costs 2,000 pounds.If the exchange rate is 1pound=$1.9,how much will the office equipment cost him in dollar terms?

​If a panic causes Indian depositors to withdraw their money from Japanese banks,it would cause the Japanese Yen to ___________,since the supply of Yen has__________

​A widget costs $1000 in the US and CAD$1200 in Canada.The current exchange rate is 1USD=1.09CAD.At this rate,

​Holding other things constant,if the US dollar appreciates,it makes the US exports

Russian Rubles Because of sanctions over their involvement in Ukraine in 2014,the Bank of Russia has raised its benchmark interest rate from 8% to 9.5%.What affect does this have on the exchange rate for the Russian Rubble versus the Euro?

​Holding other things constant,if the US dollar depreciates,it makes the US exports

​Holding other things constant,a decrease in the inflation rate in the US compared to the Canadian economy may cause the demand for the US dollar to _____________ and the supply to __________.

​John wants to buy a new television set.He can either buy it in the US and pay $1200 or buy it in Canada and pay CAD$1300.At the exchange rate of 1CA$=US$0.92,ignoring any other costs,he would

An individual in the England wants to buy office equipment from England which costs $2,000.If the exchange rate is 1pound=$1.9,how much will the office equipment cost him in pounds?​

​In the market for Canadian dollars measured in US dollars,the demand for Canadian dollars is

​A weaker peso,relative to the US dollar,causes the demand for US exports to Mexico to______ and the demand for US imports from Mexico to______

The One Lessor of Business

Benefits, Costs, and Decisions

Extent How Much Decisions

Investment Decisions: Look Ahead and Reason Back

Simple Pricing

Economies of Scale and Scope

Understanding Markets and Industry Changes

Market Structure and Long Run Equilibrium

Strategy: the Quest to Keep Profit From Eroding

More Realistic and Complex Pricing

Direct Price Discrimination

Strategic Games

Bargaining

Making Decisions With Uncertainty

Auctions

The Problem of Adverse Selection

The Problem of Moral Hazard

Getting Employees to Work in the Firms Best Interest

Getting Divisions to Work in the Firms Best Interest

Managing Vertical Relationships

Filters

Holding other things constant,if the Japanese Yen,depreciates,it makes the imports to Japan

In the market for Canadian dollars measured in US dollars,if the price of a US dollar is 1.10 Canadian dollars,a Canadian dollar is

A lawn mower costs $500 in the US and 8188 Mexican Pesos in Mexico.The current exchange rate is 1USD=12.97MXN.At this rate,

Holding other things constant,a decrease in the inflation rate in the US compared to the Canadian economy will cause the demand for the Canadian dollar to ___ and the supply to .

A Swiss consumer wants to buy an American car.The exchange rate is 1USD=0.89CHF (Swiss Francs).The car costs $10,000.How much would the car cost him in Swiss Francs?

John wants to buy a new lawn mower.He can either buy it in the US and pay $500 or buy it in Mexico and pay 6188 Mexican Pesos.At the exchange rate of 1 Mexican Peso=0.771US$,ignoring any other costs,he would

If the price of a Canadian dollar went from 0.95 US dollars to 0.98 US dollars,we would say that the Canadian dollar has

In the market for Canadian dollars measured in US dollars,the demand for US dollars is

If the Canadian dollar depreciates,holding other things constant,it makes Canadian imports

An individual in the US wants to buy office equipment from England which costs 2,000 pounds.If the exchange rate is 1pound=$1.9,how much will the office equipment cost him in dollar terms?

If a panic causes Indian depositors to withdraw their money from Japanese banks,it would cause the Japanese Yen to _,since the supply of Yen has

A widget costs $1000 in the US and CAD$1200 in Canada.The current exchange rate is 1USD=1.09CAD.At this rate,

Holding other things constant,if the US dollar appreciates,it makes the US exports

Holding other things constant,if the US dollar depreciates,it makes the US exports

Holding other things constant,a decrease in the inflation rate in the US compared to the Canadian economy may cause the demand for the US dollar to ___ and the supply to .

John wants to buy a new television set.He can either buy it in the US and pay $1200 or buy it in Canada and pay CAD$1300.At the exchange rate of 1CA$=US$0.92,ignoring any other costs,he would

An individual in the England wants to buy office equipment from England which costs $2,000.If the exchange rate is 1pound=$1.9,how much will the office equipment cost him in pounds?

In the market for Canadian dollars measured in US dollars,the demand for Canadian dollars is

A weaker peso,relative to the US dollar,causes the demand for US exports to Mexico to and the demand for US imports from Mexico to