Just Correct Answer will be okay () Below are several items related to the US Ba

Question

Just Correct Answer will be okay

() Below are several items related to the US Balance of payment In the market for dollars, identify whether they are related to the supply or demand for dollars 1· Circle one a. Imports of Cars into US b. US tourism abroad c. Chinese purchases of American bonds d. American Company dividends distributed overseas Supply or Demand e. Interests payments by foreign borrowers to US banks Supplyor Demand f. Payments to US company employees serving abroad Supply or Demand g. Exports of oil h. Migrants in the US send money (remittances) home Supply or Demand Demand Supply or Demand Upply.or Demand Upply.or Demand (ii) Exchange rates define the value of one currency in terms of another. The currency in the denominator defines the market and is the one being valued. If the dollar is valued at.90 Euros that is equivalent to saying Euro/Dollar .90/1.00 a) If the dollar and the Euro exchange rate moves to one for one, is the dollar stronger (more valuable) or weaker (less valuable).? b) If the Euro/Dollar exchange rate move to.70/1.00 is the dollar stronger (more valuable) or weaker (less valuable)? c) Newspapers typically report the Dollar/Euro exchange rate. Does a higher exchange rate (say 1.10 as opposed to 1.05) mean the Euro is more or less valuable (strong) d) At the Dollar/Euro exchange of 1.10, calculate the exchange rate for the Dollar (show your equation)

Explanation / Answer

1)

a) supply for dollars

b) supply for dollars

c) demand for dollars

d) supply for dollars

e) demand for dollars

f) supply for dollars

g) demand for dollars

h) supply for dollars

2)

a) Dollar will get stronger if both the currency increases with the same value and will get weaker if both the currency decreases with the same value.

b) exchange rate is 0.7 means 1 dollar is equal to 0.7 euros and previously it was 0.9 euros it means dollar got weaker relative to euros.

c) If Dollar/Euro falls then the value euros decreases relative to dollar. Euros become less valuable.

d) Dollar/Euro = 1.10

dollar = 1.10 euro

euro = 1/1.10 dollar

euro = 0.9090

Related Questions

Navigate

• Browse (All)
• Browse J
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.