Which of the following will not lead to an appreciation of the currency of country X?
Exchange Rates

Quiz
•
Social Studies
•
11th - 12th Grade
•
Medium
Christopher Warren
Used 23+ times
FREE Resource
11 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
an increase in demand fo exports of country X
an increase in demand for imports in country X
an increase in foreign investment in country X
an increase in interest rates in country X
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which of the following will lead to a depreciation of the currency of country X?
expectations of currency appreciation in country X
a lower inflation rate in country X, which makes its exports more competitive
a fall in interest rates in country X
a decrease in demand for imports in country X
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
The currency of country X will appreciate if there is
an increase in demand for the currency of country X
a decrease in demand for the currency of country X
an increase in supply of the currency of country X
all of the above
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
If the US dollar depreciates, the US trade deficit _____________________ because exports become _____________________ to foreigners.
decreases/cheaper
increases/more expensive
decreases / more expensive
increases / cheaper
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
If the euro appreciates, the eurozone’s net exports will _____________________ because exports will become _____________________ to foreigners and imports will become _____________________.
fall / cheaper / more expensive
increase / cheaper / more expensive
fall / more expensive / cheaper
increase / more expensive / cheaper
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
If the British pound appreciates, demand pull inflation in the UK _____________________ because net exports fall, and cost push inflation _____________________ because imported inputs become cheaper.
increases/decreases
decreases/decreases
increases/decreases
decreases/increases
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Suppose country X fixes its currency against the US dollar, and then experiences a fall in demand for its exports. It can maintain the value of its currency if its central bank
buys the currency in foreign exchange markets
sells reserves of foreign exchange
raises interest rates
all of the above
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