Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

In the foreign exchange market, foreign residents wishing to purchase U.S.exports or U.S.real and financial assets must:

Accepted Answer

A) demand U.S. dollars by supplying their foreign currency. 
B) demand U.S. dollars by supplying U.S. dollars. 
C) supply U.S. dollars by demanding their foreign currency. 
D) none of the above. 
A) demand U.S. dollars by supplying their foreign currency. 
B) demand U.S. dollars by supplying U.S. dollars. 
C) supply U.S. dollars by demanding their foreign currency. 
D) none of the above.

Question 3

Borrowing from another country that occurs when the country has a trade deficit and its citizens sell real and financial assets to foreigners is called a capital inflow.

Accepted Answer

A) True 
 B)False

Question 4

Capital inflows occur if foreign interest rates are greater than domestic interest rates.

Accepted Answer

A) True 
 B)False

Question 5

In the foreign exchange market, the quantity U.S.dollars supplied is a function of:

Accepted Answer

A) the amount of imports and the level of capital outflows. 
B) the amount of exports and the level of capital outflows. 
C) the amount of exports and the level of capital inflows. 
D) none of the above. 
A) the amount of imports and the level of capital outflows. 
B) the amount of exports and the level of capital outflows. 
C) the amount of exports and the level of capital inflows. 
D) none of the above.

Question 6

Changes in domestic and foreign income result in:

Accepted Answer

A) movements along the demand and supply curves of the foreign exchange market. 
B) shifts in the demand and supply curves of the foreign exchange market. 
C) all of the above. 
D) none of the above. 
A) movements along the demand and supply curves of the foreign exchange market. 
B) shifts in the demand and supply curves of the foreign exchange market. 
C) all of the above. 
D) none of the above.

Question 7

Net exports are positively related to income in the rest of the world.

Accepted Answer

A) True 
 B)False

Question 8

Under a fixed exchange rate system, a balance of payments surplus may:

Accepted Answer

A) decrease the country's money supply if there is a non-sterilized central bank intervention. 
B) decrease the country's money supply if there is a sterilized central bank intervention. 
C) increase the country's money supply if there is a non-sterilized central bank intervention. 
D) increase the country's money supply if there is a sterilized central bank intervention. 
A) decrease the country's money supply if there is a non-sterilized central bank intervention. 
B) decrease the country's money supply if there is a sterilized central bank intervention. 
C) increase the country's money supply if there is a non-sterilized central bank intervention. 
D) increase the country's money supply if there is a sterilized central bank intervention.

Question 9

An increase in the supply of 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.

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

In the foreign exchange market, foreign residents wishing to purchase U.S.exports or U.S.real and financial assets must:

Borrowing from another country that occurs when the country has a trade deficit and its citizens sell real and financial assets to foreigners is called a capital inflow.

Capital inflows occur if foreign interest rates are greater than domestic interest rates.

In the foreign exchange market, the quantity U.S.dollars supplied is a function of:

Changes in domestic and foreign income result in:

Net exports are positively related to income in the rest of the world.

Under a fixed exchange rate system, a balance of payments surplus may:

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

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

In the foreign exchange market, foreign residents wishing to purchase U.S.exports or U.S.real and financial assets must:

Borrowing from another country that occurs when the country has a trade deficit and its citizens sell real and financial assets to foreigners is called a capital inflow.

Capital inflows occur if foreign interest rates are greater than domestic interest rates.

In the foreign exchange market, the quantity U.S.dollars supplied is a function of:

Changes in domestic and foreign income result in:

Net exports are positively related to income in the rest of the world.

Under a fixed exchange rate system, a balance of payments surplus may:

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

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