Exam 15: International and Balance of Payments Issues in the Macro Economy

The major factor contributing to the depreciation of the Euro in 1999 and 2000 was:

The value at which one currency can be exchanged for another currency is called the real exchange rate.

Starting in 2008 and continuing into 2012,the Japanese yen kept appreciating against the U.S.dollar,hurting Japanese exports to the U.S.

The U.S.imports Japanese cars with a domestic price of 5,000,000 yen and the yen/dollar exchange rate is 120 on January 1,2003.On January 1,2004 the yen/dollar exchange rate is 125.What is the dollar price of the cars on January 1,2003? What is the dollar price of the cars on January 1,2004?

A measure of the change in the stock of real and financial assets held by a country's residents in a foreign country and by foreigners in the given country is called the:

Briefly explain the behavior of the Federal Reserve considering a balance of payments disequilibria within a fixed exchange rate system.

Domestic currency appreciation will:

Under a fixed exchange rate system,the central bank of a country experiencing a balance of payments surplus will:

The action taken by a country's central bank to prevent balance of payments policies from influencing the country's domestic money supply is called a:

The difference between nominal and real exchange rates is:

Domestic currency depreciation will:

When a country's export spending exceeds import spending,the country is experiencing a:

The Bretton Woods conference in 1944 established the gold standard,which was abandoned in 1971.

Imports are:

If net capital flow were zero for a country,then exports would not equal imports.

A fixed exchange rate system where central banks buy and sell gold to keep exchange rates at a given level is called the:

What is the difference between a sterilized and non-sterilized central bank intervention in the foreign exchange market?

Stating the dollar has strengthened against the yen means the dollar has depreciated.

The flow of capital results from the changes or differences in interest rates among countries.

Using the foreign exchange market diagram,graphically illustrate and explain the impact of foreign interest rates that exceed U.S.interest rates,all else constant,on the exchange rate.