Question 1

According to the 2009 hamburger standard,the country with the most undervalued currency relative to the United States dollar was

Accepted Answer

A)  ChinA.
B)  Norway.
C)  Australia.
D)  Japan.E) B) and C)
F) A) and B)

Question 2

Statement I: Since 1985,for the first time in our history,we have run up huge international debt.
Statement II: To finance our international consumer spending binge we have been selling off pieces of America.

Accepted Answer

A)  Statement I is true and statement II is false.
B)  Statement II is true and statement I is false.
C)  Both statements are true.
D)  Both statements are false.E) A) and C)
F) A) and B)

Question 3

Freely floating exchange rates are determined by

Accepted Answer

A)  the forces of supply and demand for currencies.
B)  the government with a trade surplus.
C)  the government with a trade deficit.
D)  the IMF.
E)  the Bretton Woods Agreement.F) A) and B)
G) C) and D)

Question 4

Which statement most accurately reflects America's economic status?

Accepted Answer

A)  We are living beyond our means.
B)  We are on the verge of bankruptcy.
C)  We are improving our international economic standing from year to year.
D)  Our current account deficit has been falling since 2004.E) All of the above
F) B) and C)

Question 5

If 1 U.S.dollar exchanges for 46.94 Indian rupees,how much would it cost in rupees to purchase a copy of Time Magazine priced at $2.50?

Accepted Answer

2.50 x 46....

Question 6

Which is the most accurate statement?

Accepted Answer

A)  The gold standard does not work in theory or practice.
B)  The euro is the official currency in every European country.
C)  There is virtually no difference between the gold standard and the gold exchange standard.
D)  At one time an ounce of gold was worth $35.E) None of the above
F) B) and C)

Question 7

Statement I.A case can be made that,as a nation,the U.S.is living beyond its means.
Statement II.Within the next five years,foreigners will own almost half of America.

Accepted Answer

A)  Statement I is true and statement II is false.
B)  Statement II is true and statement I is false.
C)  Both statements are true.
D)  Both statements are false.E) A) and D)
F) C) and D)

Question 8

The last year that our current account deficit was close to 0 was _________.

Accepted Answer

The answer of The last year that our current account...

Question 9

Higher domestic interest rates encourage

Accepted Answer

A)  U.S.investors to invest abroad.
B)  foreign investors to withdraw their funds from U.S.investment.
C)  U.S.investors to withdraw their funds from foreign investment.D) A) and C)
E) All of the above

Question 10

If the exchange rate between the U.S.dollar and the Japanese yen is $1 = 200 yen,then the dollar price of yen is

Accepted Answer

A)  $.005.
B)  $.05.
C)  $.50.
D)  $5.E) A) and D)
F) All of the above

Question 11

Depreciation of the dollar relative to the yen means that the

Accepted Answer

A)  dollar price of the yen has fallen.
B)  yen prices of Japanese goods have increased to the Japanese.
C)  dollar prices of imported goods from Japan have increased.
D)  yen are less expensive to Americans.E) All of the above
F) A) and D)

Question 12

If the dollar depreciates in value against the euro for an American,the cost of French champagne

Accepted Answer

A)  rises.
B)  falls.
C)  stays the same.D) B) and C)
E) A) and C)

Question 13

Between the end of World War II and 1971,the United States dollar was

Accepted Answer

A)  the only major currency in the world convertible into gold for purposes of international payments.
B)  not used as an international currency.
C)  the only major currency in the world not backed by gold.
D)  not very important in the transfer of goods between countries.
E)  undervalued,leading to consistent balance-of-payment deficits.F) A) and B)
G) B) and D)

Question 14

If the dollar rose by 35% relative to other currencies,our current account deficit would

Accepted Answer

A)  rise sharply.
B)  rise slightly.
C)  not be affected.
D)  fall slightly.
E)  fall sharply.F) D) and E)
G) A) and E)

Question 15

Under a gold standard in which France defined one franc to be worth 1/50th of an ounce of gold and the U.S.defined one dollar to be worth 1/10th of an ounce of gold,then

Accepted Answer

A)  one U.S.dollar would exchange for five French francs.
B)  the French franc is worth only one-tenth as much as the dollar is worth.
C)  the U.S.dollar is valued at one-fifth of the French franC.
D)  one French franc would exchange for ten dollars.
E)  exports would rise in France and decline in the U.S.F) None of the above
G) A) and D)

Question 16

If you were going to go on a vacation to Italy,you would prefer

Accepted Answer

A)  a strong dollar against the euro.
B)  a weak dollar against the euro.
C)  a strong euro against the dollar.
D)  a weak dollar against all currencies.E) B) and C)
F) C) and D)

Question 17

The country with the largest trade surplus as a percentage of GDP in 2009 was

Accepted Answer

A)  Japan.
B)  China.
C)  Germany.
D)  EnglanD.E) None of the above
F) B) and C)

Question 18

During the 1980s,foreigners expanded their role in the United States as

Accepted Answer

A)  both creditors and owners.
B)  neither creditors nor owners.
C)  as owners but not as creditors.
D)  as creditors but not as owners.E) A) and D)
F) B) and C)

Question 19

In 2009,our current account deficit was $___________ billion.

Accepted Answer

The answer of In 2009,our current account deficit was $___________...

Question 20

The U.S.dollar is backed by ___________.

Accepted Answer

hing (or t...

Exam 32: International Finance

Depreciation of the dollar relative to the yen means that the

Correct AnswerverifiedShow Answer

If the dollar depreciates in value against the euro for an American,the cost of French champagne

Correct AnswerverifiedShow Answer

Statement I: Since 1985,for the first time in our history,we have run up huge international debt. Statement II: To finance our international consumer spending binge we have been selling off pieces of America.

Correct AnswerverifiedShow Answer

The country with the largest trade surplus as a percentage of GDP in 2009 was

Correct AnswerverifiedShow Answer

During the 1980s,foreigners expanded their role in the United States as

Correct AnswerverifiedShow Answer

Higher domestic interest rates encourage

Correct AnswerverifiedShow Answer

If 1 U.S.dollar exchanges for 46.94 Indian rupees,how much would it cost in rupees to purchase a copy of Time Magazine priced at $2.50?

Correct Answerverified2.50 x 46....View AnswerShow Answer

If you were going to go on a vacation to Italy,you would prefer

Correct AnswerverifiedShow Answer

Which statement most accurately reflects America's economic status?

Correct AnswerverifiedShow Answer

The U.S.dollar is backed by ___________.

Correct Answerverifiedhing (or t...View AnswerShow Answer

Under a gold standard in which France defined one franc to be worth 1/50th of an ounce of gold and the U.S.defined one dollar to be worth 1/10th of an ounce of gold,then

Correct AnswerverifiedShow Answer

In 2009,our current account deficit was $___________ billion.

Correct AnswerverifiedShow Answer

If the dollar rose by 35% relative to other currencies,our current account deficit would

Correct AnswerverifiedShow Answer

Between the end of World War II and 1971,the United States dollar was

Correct AnswerverifiedShow Answer

If the exchange rate between the U.S.dollar and the Japanese yen is $1 = 200 yen,then the dollar price of yen is

Correct AnswerverifiedShow Answer

The last year that our current account deficit was close to 0 was _________.

Correct AnswerverifiedShow Answer

Statement I.A case can be made that,as a nation,the U.S.is living beyond its means. Statement II.Within the next five years,foreigners will own almost half of America.

Correct AnswerverifiedShow Answer

Freely floating exchange rates are determined by

Correct AnswerverifiedShow Answer

Which is the most accurate statement?

Correct AnswerverifiedShow Answer

According to the 2009 hamburger standard,the country with the most undervalued currency relative to the United States dollar was

Correct AnswerverifiedShow Answer

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2.50 x 46....
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hing (or t...
View Answer

Under a gold standard in which France defined one franc to be worth 1/50^th of an ounce of gold and the U.S.defined one dollar to be worth 1/10^th of an ounce of gold,then

Correct Answer
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