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

A dress manufactured in Hagen, Germany, costs 195 euros.What is the U.S.dollar value of the same dress if the exchange rate is $0.89 per euro?

The hours of trading of North American markets overlap with those of both the European markets and the Asian markets.

The statistical discrepancy account:

Which of the following is true of the balance of payments accounts?

A gift from the British prime minister to the American president would be classified as a _____ in the balance of payments account.

Assume that the exchange rate moves from $1 = €1.2 to $1 = €0.97.This exchange rate change indicates that:

Which of the following is included in a nation's current account?

The euro coins can be spent only in the countries where they are made, because one side of the coin has an image that is individualized for each of the countries of the European Union.

The four main components of the current account are:

In the balance of payment accounting, transactions that bring in money are treated as debit and the transactions that take away money are treated as credits.