Ch28. Exchange rate

Ch28. Exchange rate

11th Grade

10 Qs

quiz-placeholder

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Ch28. Exchange rate

Ch28. Exchange rate

Assessment

Quiz

Social Studies

11th Grade

Easy

Created by

Bolortuya Munkhbayar

Used 1+ times

FREE Resource

10 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Media Image

A Chinese firm buys copper from Chile. What effect will this transaction have on the foreign exchange market?

C

B

A

D

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

A country’s exchange rate is initially 20 rupees = $1. Its firms sell a product in the USA for $20. Its domestic price stays the same, but the exchange rate changes to 25 rupees = $1. How much will the product now sell for in the USA?

A$16

B$18

C$24

D$25

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

There is a fall in Norway’s exchange rate from 10 krona = US$1 to 15 krona = US$1. What must occur as a result of this change?

ANorwegian krona will become cheaper in terms of dollars.

BThe price level will fall in Norway.

CThe US dollar will be undervalued.

DUS imports from Norway will rise in price.

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Media Image

The diagram shows the exchange rate for Egyptian pounds in terms of dollars. The initial equilibrium is at X. What will be the new equilibrium position if Egypt experiences a higher inflation rate than the USA and if more Egyptians visit the USA as tourists?

D

B

A

C

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Media Image

The diagram shows the demand for and supply of dollars on the foreign exchange market. D and S are the initial demand and supply curves of the dollar ($). Which change would cause the demand curve to shift to D1 and the supply curve to S1?

Aa decrease in Japanese tariffs on US imports

Ba decrease in US interest rates

Can increase in Japanese incomes

Dan increase in the quality of US products

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Media Image

A country experiences an appreciation of its floating exchange rate. Which combination of changes to the components of the current account of the balance of payments would have caused this?

Adecreaseincreaseunchangedincrease

Bincreasedecreaseincreaseunchanged

Cincreaseunchangedincreasedecrease

Dunchangeddecreaseincreasedecrease

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The price of a country’s imports decreases and its trade in goods and services deficit decreases. What could explain this?

Aexport revenue decreases

Bthe net inflow of profit increases

Cthe price elasticity of demand for imports is inelastic

Dworkers’ remittances out of the country decrease

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