Exam 20: Exchange Rates and the Balance of Payments

Country X-2013 Transactions (billions of dollars) Exports of goods \ 100 Net Unilateral Transfers -10 Imports of Services -50 Official Transactions -10 Capital Inflows 150 Imports of Goods -250 Exports of Services 125 Capital Outflows -75 -In the above table,the fact that there is a minus sign before the number for unilateral transfers means that

Hypothetical Data for Nation "A" in Billions of Local Currency Exports of goods 50 Imports of goods -100 Exports of services 80 Imports of services -20 Net unilateral transfers -25 Capital account 100 Official reserve transaction accounts -85 -Refer to the above table.Nation "A" has a balance of trade

An increase in the value of a domestic currency in terms of other currencies is known as

Under flexible exchange rates,the exchange rate is set by

When all currencies are tied directly to gold,then

The foreign exchange market is

If there is unrest in the Middle East,and Saudi Arabian investors purchase German securities,the

An accounting identity

The demand for foreign currency in the United States is a

Judy has just bought a car that is made in Germany.As far as the U.S.balance of payments is concerned this purchase is a(n)

The demand curve for Japanese yen will shift to the right when

A key objective of the gold standard was to

The effect that a gift given to a U.S.citizen from a foreign resident will have on the balance of payments is to

If there is an outward shift in U.S.demand for French goods,the result will be

If the foreign exchange rate is one dollar for 10 South African rand,then how many dollars are needed to purchase an item that costs 400 rand?

Which agreement was signed in 1944 with the purpose of creating a new international payment system?

The United States dollar has NOT been officially convertible to gold by international traders since

When the supply and demand of currencies in the foreign exchange market determines their relative values,this is known as

Special Drawing Rights are

Country X-2013 Transactions (billions of dollars) Exports of goods \ 100 Net Unilateral Transfers -10 Imports of Services -50 Official Transactions -10 Capital Inflows 150 Imports of Goods -250 Exports of Services 125 Capital Outflows -75 -In the above table,the balance on the capital account for Country X is ________ billion dollars.