1) The foreign exchange market is the marketwhere: 2) The exchange rate refers t

ID: 1236259 • Letter: 1

Question

1) The foreign exchange market is the marketwhere:

2) The exchange rate refers to:

3) Flexible exchange rate systems occurwhen:

4) If the demand curve for dollars shifts tothe right:

5) If the supply curve for dollars shifts tothe right relative to the British pound:

6) With a system of flexible floating exchangerates, a United States trade deficit with Japan will lead to:

7) When the dollar appreciates, it meansthat:

8) Which of the following happens when thedollar declines in value against other currencies?

9) If fewer dollars are needed to buy a Germanmark:

10) Other things equal, higher U.S. incomewould:

1) The foreign exchange market is the marketwhere:

Currencies are bought and sold.

2) The exchange rate refersto:

The price of one currency in terms of anothercurrency.

3) Flexible exchange rate systems occurwhen:

U.S. consumers pay different prices for differentcountries' goods and services.

4) If the demand curve for dollars shifts tothe right:

5) If the supply curve for dollars shifts tothe right relative to the British pound:

The cost of British goods to Americans hasdecreased.

6) With a system of flexible floating exchangerates, a United States trade deficit with Japan will leadto:

A depreciation of the dollar in relation to theyen.

7) When the dollar appreciates, it meansthat:

It takes fewer dollars to purchase foreigncurrencies.

8) Which of the following happens when thedollar declines in value against othercurrencies?

The U.S. current account trade deficitincreases.

9) If fewer dollars are needed to buy a Germanmark:

10) Other things equal, higher U.S. incomewould:

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