Question 1

The balance of payments accounts are divided into two sections: the current account and the financial account.

Accepted Answer

A) True 
 B)False

Question 2

An increase in the demand for dollars on the foreign exchange market,all else equal,will result in:

Accepted Answer

A) appreciation of the U.S. dollar and depreciation of the foreign currency. 
B) appreciation of the U.S. dollar and appreciation of the foreign currency. 
C) depreciation of the U.S. dollar and depreciation of the foreign currency. 
D) depreciation of the U.S. dollar and appreciation of the foreign currency. 
A) appreciation of the U.S. dollar and depreciation of the foreign currency. 
B) appreciation of the U.S. dollar and appreciation of the foreign currency. 
C) depreciation of the U.S. dollar and depreciation of the foreign currency. 
D) depreciation of the U.S. dollar and appreciation of the foreign currency.

Question 3

In an open economy,total income is the sum of exports and imports.

Accepted Answer

A) True 
 B)False

Question 4

Excess supply of dollars in the foreign exchange market represents a balance of payments deficit in the U.S.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) increase the supply of the domestic currency to prevent currency depreciation. 
B) increase the demand for the domestic currency to prevent currency depreciation. 
C) increase the supply of domestic currency to prevent a currency appreciation. 
D) increase the demand for domestic currency to prevent a currency appreciation. 
A) increase the supply of the domestic currency to prevent currency depreciation. 
B) increase the demand for the domestic currency to prevent currency depreciation. 
C) increase the supply of domestic currency to prevent a currency appreciation. 
D) increase the demand for domestic currency to prevent a currency appreciation.

Question 6

A restrictive monetary policy,all else equal,will:

Accepted Answer

A) depreciate the domestic currency. 
B) appreciate the domestic currency. 
C) all of the above. 
D) none of the above. 
A) depreciate the domestic currency. 
B) appreciate the domestic currency. 
C) all of the above. 
D) none of the above.

Question 7

The U.S.exports computers with a domestic price of $100,000 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 yen price of the computers on January 1,2003? What is the yen price of the computers on January 1,2004?

Accepted Answer

January 1,2003: $100,000 × 120

Question 8

The difference between interest income or receipts earned on investments in the rest of the world by the residents of a given country and the payments to foreigners on investments they have made in a given country is called:

Accepted Answer

A) unilateral transfers. 
B) net investment income. 
C) capital expenditures. 
D) none of the above. 
A) unilateral transfers. 
B) net investment income. 
C) capital expenditures. 
D) none of the above.

Question 9

Under a gold standard,a continual balance of surplus in any country can be sustained only as long as the country's gold reserves hold out.

Accepted Answer

A) True 
 B)False

The balance of payments accounts are divided into two sections: the current account and the financial account.

An increase in the demand for dollars on the foreign exchange market,all else equal,will result in:

In an open economy,total income is the sum of exports and imports.

Excess supply of dollars in the foreign exchange market represents a balance of payments deficit in the U.S.

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

A restrictive monetary policy,all else equal,will:

The U.S.exports computers with a domestic price of $100,000 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 yen price of the computers on January 1,2003? What is the yen price of the computers on January 1,2004?

The difference between interest income or receipts earned on investments in the rest of the world by the residents of a given country and the payments to foreigners on investments they have made in a given country is called:

Under a gold standard,a continual balance of surplus in any country can be sustained only as long as the country's gold reserves hold out.

Managers and Economics

Demand, supply, and Equilibrium Prices

Demand Elasticities

Techniques for Understanding Consumer Demand and Behavior

Production and Cost Analysis in the Short Run

Production and Cost Analysis in the Long Run

Market Structure: Perfect Competition

Market Structure: Monopoly and Monopolistic Competition

Market Structure: Oligopoly

Pricing Strategies for the Firm

Measuring Macroeconomic Activity

Spending by Individuals, firms, and Governments on Real Goods and Services

The Role of Money in the Macro Economy

The Aggregate Model of the Macro Economy

Combining Micro and Macro Analysis for Managerial Decision Making

Filters

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

The balance of payments accounts are divided into two sections: the current account and the financial account.

An increase in the demand for dollars on the foreign exchange market,all else equal,will result in:

In an open economy,total income is the sum of exports and imports.

Excess supply of dollars in the foreign exchange market represents a balance of payments deficit in the U.S.

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

A restrictive monetary policy,all else equal,will:

The U.S.exports computers with a domestic price of $100,000 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 yen price of the computers on January 1,2003? What is the yen price of the computers on January 1,2004?

The difference between interest income or receipts earned on investments in the rest of the world by the residents of a given country and the payments to foreigners on investments they have made in a given country is called:

Under a gold standard,a continual balance of surplus in any country can be sustained only as long as the country's gold reserves hold out.

Managers and Economics

Demand, supply, and Equilibrium Prices

Demand Elasticities

Techniques for Understanding Consumer Demand and Behavior

Production and Cost Analysis in the Short Run

Production and Cost Analysis in the Long Run

Market Structure: Perfect Competition

Market Structure: Monopoly and Monopolistic Competition

Market Structure: Oligopoly

Pricing Strategies for the Firm

Measuring Macroeconomic Activity

Spending by Individuals, firms, and Governments on Real Goods and Services

The Role of Money in the Macro Economy

The Aggregate Model of the Macro Economy

Combining Micro and Macro Analysis for Managerial Decision Making

Filters