Exam 7: an Introduction to the Foreign Exchange Market and the Balance of Payments

The table given below reports the value of various international transactions in Germany for the year 2011.The negative sign denotes the outflow of euros from Germany. Table 6.1 Refer to Table 6.1.Compute the capital account balance for Germany.

If the exchange rate between the Canadian dollar (C$)and the U.S.dollar ($)changes from 1C$ = $1.30 to 1C$ = $1.05 we can say that:

The balance of payments is:

The table given below reports the value of various international transactions in Germany for the year 2011.The negative sign denotes the outflow of euros from Germany. Table 6.1 Refer to Table 6.1.The statistical discrepancy in the balance of payments accounts for Germany in the year 2011 is:

The demand for foreign currency in the United States is based on the demand for:

Given an exchange rate of 120 yen = $1 what is the U.S.dollar price of 1 yen?

A hamburger costs $1.79 in New York and 2.54 euros in Paris.If the exchange rate is $0.93 per euro, what price difference exists in terms of European currency?

The average household in Australia spends AUD $560 on groceries per month.What would this grocery bill amount to in U.S.dollars if the current exchange rate is AUD $1.55 per dollar?

A U.S.citizen's income from investment in foreign countries is _____ in the U.S.current account.

All euro coins circulating in the different countries of the European Union have the same design.

The capital account is the sum of the merchandise, services, and unilateral transfers accounts.

A computer sells for $800 in the United States and for 600 British pounds in England.Given an exchange rate of 0.65 British pound = $1, how do the computer prices of these countries compare?

The table given below reports the value of various international transactions in Germany for the year 2011.The negative sign denotes the outflow of euros from Germany. Table 6.1 Refer to Table 6.1.Compute the merchandise trade balance of Germany in 2011.

When one country buys more from another single country than it sells to it, it is said to be experiencing:

Which of the following would be entered as a credit in the financial account of the United States?

Which of the following will be recorded as a credit entry in the U.S.balance of trade in merchandise account?

If the bank is selling Russian rubles (RUB)for $0.16, then the implied ruble price of the dollar is RUB 6.25.

When economists talk about a balance of payments "deficit, " they refer to:

A U.S.tourist travels to Italy and spends $900 during the trip.How is this activity recorded in the U.S.current account?

Exchange rates allow for a comparison of the trade values of goods and services across countries.