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

A record of all transactions between residents of the reporting country and residents of the rest of the world over a period of time is called the:

Gold certificates, special drawing rights, the reserve position of the IMF, and the holdings of foreign currencies represent:

When the central banks of various countries intervene in the foreign exchange market to maintain an exchange rate, this type of exchange rate system is called a ________ exchange rate system.

Under a fixed exchange rate system, a central bank's intervention in the foreign exchange market will not affect the domestic money supply.

A restrictive monetary policy, all else equal, will:

Using the foreign exchange market diagram, graphically illustrate and explain the impact of an increase in foreign income, all else constant, on the exchange rate.

The political stability of countries has an impact on the foreign exchange market.

In an open mixed economy, injections are saving, taxation, and import spending.

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

Capital outflows occur if:

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

Assets which include foreign currencies and gold certificates that central banks use to maintain exchange rates in a predetermined range are called:

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?

Lending abroad represents:

In January 2001, the euro/dollar exchange rate was 1.10, and in January 2002, the euro/dollar exchange rate was 1.120 What happened to the exchange rate during this period?

You are given the following information. Compute net exports, net capital flows, and the balance of payments.

An index of the weighted exchange value of the U.S.dollar versus the currencies of a broad group of major U.S.trading partners is called:

Holding everything else constant, a country's imports will decrease if the:

The difference between the 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 the given country is called:

In an open economy with global capital markets and mobile capital: