國際金融全部選擇題(12-22章)

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12.1

TheNationalIncomeAccounts

A1)

Acountry'sgrossnationalproduct(GNP)is

A)

thevalueofallfinalgoodsandservicesproducedbyitsfactorsofproductionandsoldonthemarketinagiventimeperiod.

B)

thevalueofallintermediategoodsandservicesproducedbyitsfactorsofproductionandsoldonthemarketinagiventimeperiod.

C)

thevalueofallfinalgoodsproducedbyitsfactorsofproductionandsoldonthemarketinagiventimeperiod.

D)

thevalueofallfinalgoodsandservicesproducedbyitsfactorsofproductionandsoldonthemarket.

E)

thevalueofallfinalgoodsandservicesproducedbyitsfactorsofproduction,excludingland,andsoldonthemarketinagiventimeperiod.

A2)

Formostmacroeconomists,

A)

nationalincomeaccountsandnationaloutputaccountsareequaltoeachother.

B)

nationalincomeaccountsexceednationaloutputaccounts.

C)

nationaloutputaccountsexceednationalincomeaccounts.

D)

itisimpossibletotellwhethernationalincomeaccountsequaltonationaloutputaccounts.

E)

Noneoftheabove.

A3)

Formostmacroeconomists,

A)

grossnationalincomeandgrossnationalproductarethesame.

B)

grossnationalincomeexceedsgrossnationalproduct.

C)

grossnationalproductexceedsgrossnationalproduct.

D)

itishardtotellwhethergrossnationalincomeequalgrossnationalproduct.

E)

Noneoftheabove.

D4)

ThehighestcomponentofGNPis,

A)

thecurrentaccount.

B)

investment.

C)

governmentpurchases.

D)

consumption.

E)

Noneoftheabove.

D5)

AnexampleofhowGNPaccountsforservicesprovidedbyforeign-ownedcapital(andGDPdoesnot)is

A)

earningsofSpanishfactorywithBritishownerscountsonlyinSpain'sGDP.

B)

earningsofSpanishfactorywithBritishownerscountsonlyinBritain'sGNP.

C)

earningsofSpanishfactorycountsinSpain'sGNPbutarepartofBritain'sGDP.

D)

earningsofSpanishfactorycountsinSpain'sGDPbutarepartofBritain'sGNP.

E)

Noneoftheabove.

C6)

Thesaleof

A)

ausedtextbookdoesenterGNP.

B)

ausedtextbookdoesnotenterGNP,butthesaleofausedhousedoes.

C)

bothausedtextbookandausedhousedonotenterGNP.

D)

ausedhousedoesnotenterGNP,butthesaleofausedbookdoes.

E)

Noneoftheabove.

B7)

Whichoneofthefollowingstatementsisthemostaccurate?

A)

Thesaleofausedtextbookdoesgenerateincomeforfactorsofproduction.

B)

Thesaleofausedtextbookdoesnotgenerateincomeforanyfactorofproduction.

C)

Thesaleofausedtextbooksometimesdoesandsometimesdoesnotgenerateincomeforfactorsofproduction.

D)

Itishardtotellwhetherasaleofausedtextbookdoesordoesnotgenerateincomeforfactorsofproduction.

E)

Noneoftheabove.

B8)

Whichoneofthefollowingstatementsisthemostaccurate?

A)

GNPplusdepreciationiscallednetnationalproduct(NNP).

B)

GNPlessdepreciationiscallednetnationalproduct(NNP).

C)

GNPlessdepreciationiscallednetfactorproduct(NFP).

D)

AnswersAandCarebothcorrect.

E)

Noneoftheabove.

E9)

NationalincomeequalsGNP

A)

lessdepreciation,lessnetunilateraltransfers,lessindirectbusinesstaxes.

B)

lessdepreciation,plusnetunilateraltransfers,plusindirectbusinesstaxes.

C)

lessdepreciation,lessnetunilateraltransfers,plusindirectbusinesstaxes.

D)

plusdepreciation,plusnetunilateraltransfers,lessindirectbusinesstaxes.

E)

lessdepreciation,plusnetunilateraltransfers,lessindirectbusinesstaxes.

E10)

TheUnitedStatesbegantoreportitsgrossdomesticproduct(GDP)onlysince

A)

1900.

B)

1921.

C)

1931.

D)

1941.

E)

1991.

A11)

GDPissupposedtomeasure

A)

thevolumeofproductionwithinacountry'sborders.

B)

thevolumeofservicesgeneratedwithinacountry'sborders.

C)

thevolumeofproductionofacountry'soutput.

D)

GNPplusdepreciation.

E)

Noneoftheabove.

D12)

GNPequalsGDP

A)

minusnetreceiptsoffactorincomefromtherestoftheworld.

B)

plusreceiptsoffactorincomefromtherestoftheworld.

C)

minusreceiptsoffactorincomefromtherestoftheworld.

D)

plusnetreceiptsoffactorincomefromtherestoftheworld.

E)

Noneoftheabove.

B13)

MovementsinGDP

A)

andGNPusuallydonotdiffergreatly.

B)

andGNPusuallydonotdiffergreatly,asapracticalmatter.

C)

andGNPusuallydodiffergreatly.

D)

areusuallysmallerthanthoseofGNPmovements,inpractice.

E)

Noneoftheabove.

C14)

In2006,theUnitedStateshad

A)

asurplusinthecurrentaccount.

B)

abalanceinthecurrentaccount.

C)

adeficitinthecurrentaccount.

D)

From2006data,itistoodifficulttodeterminewhetherasurplusoradeficitexistedinthecurrentaccount.

E)

Noneoftheabove.

E15)

Netunilateraltransfers

A)

arepartofanationalincome.

B)

arepartofacountry'sproduct.

C)

mustbeaddedtoNNPincalculationsofnationalincome.

D)

arepartofacountry'sGNP.

E)

OnlyAandC.

C16)GDPisdifferentthanGNPinthat

A)

itaccountsfornetunilateraltransfers.

B)

itdoesnotaccountforindirectbusinesstaxes.

C)

itdoesnotaccountforacountry'sproductionusingserviceswithforeign-ownedcapital.

D)

itaccountsfordepreciation.

E)

Noneoftheabove

12.2NationalIncomeAccountingforanOpenEconomy

B1)

MovementsinGDP

A)

differgreatlyfrommovementsinGNP.

B)

donotdiffergreatlyfrommovementsinGNP.

C)

arenotallowedtodifferatallfrommovementsinGNPbydefinition.

D)

needtobeinflationadjustedinordertomatchmovementsinGNP.

E)

Noneoftheabove.

B2)Purchasesofinventoriesby

A)

firmsarenotcountedininvestmentspending.

B)

firmsarealsocountedininvestmentspending.

C)

householdsarealsocountedininvestmentspending.

D)

householdsandFirmsarealsocountedininvestmentspending.

E)

Noneoftheabove.

C3)

Inopeneconomies,

A)

savingandinvestmentarenecessarilyequal.

B)

asinaclosedeconomy,savingandinvestmentarenotnecessarilyequal.

C)

savingandinvestmentarenotnecessarilyequalastheyareinaclosedeconomy.

D)

savingandinvestmentarenecessarilyequalcontrarytothecaseofaclosedeconomy.

E)

Noneoftheabove.

A4)

Investmentisusually

A)

morevariablethanconsumption.

B)

lessvariablethanconsumption.

C)

asvariableasconsumption.

D)

Itishardtotellfromthedatawhetherinvestmentismoreorlessvariablethanconsumption.

E)

Noneoftheabove.

D5)

Governmentpurchasesaredefinedas

A)

onlygoodspurchasedbyfederal,state,orlocalgovernments.

B)

allgoodsandservicespurchasedbythefederalgovernment.

C)

allgoodsandservicespurchasedbythefederalorstategovernment.

D)

allgoodsandservicespurchasedbythefederal,state,orlocalgovernment.

E)

Noneoftheabove.

B6)

Governmenttransferpaymentslikesocialsecurityandunemploymentbenefitsare

A)

includedingovernmentpurchases.

B)

notincludedingovernmentpurchases.

C)

notincludedingovernmentpurchases,buttheyareincludedintheconsumptioncomponentofGNP.

D)

notincludedingovernmentpurchases,buttheyarepartoftheinvestmentcomponentofGNP.

E)

Noneoftheabove.

B7)

In1929,governmentpurchasesaccountedfor

A)

only18.5percentofU.S.GNP.

B)

only8.5percentofU.S.GNP.

C)

28.5percentofU.S.GNP.

D)

38.5percentofU.S.GNP.

E)

48.5percentofU.S.GNP.

A8)

Whichoneofthefollowingexpressionsisthemostaccurate?

A)

CA=EX-IM

B)

CA=IM-EX

C)

CA=EX=IM

D)

CA=EX+IM

E)

Noneoftheabove.

A9)

Acountry'scurrentaccount

A)

balanceequalsthechangeinitsnetforeignwealth.

B)

balanceequalsthechangeinitsforeignwealth.

C)

surplusequalsthechangeinitsforeignwealth.

D)

deficitequalsthechangeinitsforeignwealth.

E)

Noneoftheabove.

A10)

TheCAisequalto

A)

Y-(C-I+G).

B)

Y+(C+I+G).

C)

Y-(C+I+G).

D)

Y-(C+I-G).

E)

Noneoftheabove.

E11)

Whichofthefollowingistrue?

A)

Acountrywithacurrentaccountsurplusisearningmorefromitsexportsthanitspendsonimports.

B)

Acountrycouldfinanceacurrenta在ccountdeficitbyusingpreviouslyaccumulatedforeignwealthtopayforitsimports.

C)

Acountrywithacurrentaccountdeficitmustbeincreasingitsnetforeigndebtsbytheamountofthedeficit.

D)

Wecandescribethecurrentaccountsurplusasthedifferencebetweenincomeandabsorption.

E)

Alloftheabovearetrue.

C12)

Overthe1980s,

A)

thereisnoquestionthatalargeincreaseinU.S.foreignassetsdidoccur.

B)

thereisaquestionwhetheralargedecreaseinU.S.foreignassetsdidoccur.

C)

thereisnoquestionthatalargedecreaseinU.S.foreignassetsdidoccur.

D)

thereisnoquestionthattherewasalmostnochangeinU.S.foreignassets.

E)

Noneoftheabove.

B

13)Inaclosedeconomy,nationalsaving

A)

sometimesequalsinvestment.

B)

alwaysequalsinvestment.

C)

isalwayslessthaninvestment.

D)

isalwaysmorethaninvestment.

E)

Noneoftheabove.

B14)

Foropeneconomies,

A)

S=I.

B)

S=I+CA.

C)

S=I-CA.

D)

S>I+CA.

E)

S<I+CA.

D15)

Anopeneconomy

A)

cansaveonlybybuildingupitscapitalstock.

B)

cansaveonlybyacquiringforeignwealth.

C)

cannotsaveeitherbybuildingupitscapitalstockorbyacquiringforeignwealth.

D)

cansaveeitherbybuildingupitscapitalstockorbyacquiringforeignwealth.

E)

Noneoftheabove.

B16)

Aclosedeconomy

A)

cansaveeitherbybuildingupitscapitalstockorbyacquiringforeignwealth.

B)

cansaveonlybybuildingupitscapitalstock.

C)

cansaveonlybyacquiringforeignwealth.

D)

cannotsaveeitherbybuildingupitscapitalstockorbyacquiringforeignwealth.

E)

Noneoftheabove.

E17)

DisposableincomeisNationalincome

A)

lesstaxescollectedfromhouseholdsandfirmsbythegovernment.

B)

plusnettaxescollectedfromhouseholdsandfirmsbythegovernment.

C)

lessnettaxescollectedfromhouseholdsandfirmsbythegovernment.

D)

lessnettaxescollectedfromhouseholdsbythegovernment.

E)

lessnettaxescollectedfromhouseholdsandfirmsbythegovernment.

A18)

Governmentsavings,Sg,isequalto

A)

T-G.

B)

T+G.

C)

T=G.

D)

T+G-I.

E)

Noneoftheabove.

E19)

Whichofthefollowingisfalseaboutprivatesavingsandgovernmentsavings?

A)

SP=Y-T-C

B)

Unlikeprivatesavingdecisions,governmentsavingdecisionsareoftenmadewithaneyetowardtheireffectonoutputandemployment.

C)

Totalsavings(S)=SP+Sg.

D)

Thenationalincomeidentitycanhelpustoanalyzethechannelsthroughwhichgovernmentsavingdecisionsinfluencemacroeconomicconditions.

E)

Noneoftheabove;allstatementsaretrue.

B20)

Inaclosedeconomy,privatesaving,Sp,isequalto

A)

I-(G-T).

B)

I+(G-T).

C)

I+(G+T).

D)

I-(G+T).

E)

I+(G-T)+C.

C21)

Inanopeneconomy,privatesaving,Sp,isequalto

A)

I-CA+(G-T).

B)

I+CA-(G-T).

C)

I+CA+(G-T).

D)

I-CA-(G-T).

E)

I+CA+(G+T).

C22)

Ricardianequivalencearguesthatwhenthegovernmentcutstaxesandraisesitsdeficit,

A)

consumersanticipatethattheywillfacelowertaxeslatertopayfortheresultinggovernmentdebt.

B)

consumersanticipatethattheywillhigherservicesfromthegovernment.

C)

consumersanticipatethattheywillfacehighertaxeslatertopayfortheresultinggovernmentdebt.

D)

consumersanticipateitwillaffecttheirfuturetaxes,ingeneralinthedirectionofloweringfuturetaxes.

E)

Noneoftheabove.

E

23)Ricardianequivalencearguesthatwhenthegovernment

A)

increasestaxesandraisesitsdeficit,consumersanticipatethattheywillfacehighertaxeslatertopayfortheresultinggovernmentdebt,thuspeoplewillraisetheirownprivatesavingtooffsetthefallingovernmentsaving.

B)

cutstaxesanddecreasesitsdeficit,consumersanticipatethattheywillfacehighertaxeslatertopayfortheresultinggovernmentdebt,thuspeoplewillraisetheirownprivatesavingtooffsetthefallingovernmentsaving.

C)

cutstaxesandraisesitssurplus,consumersanticipatethattheywillfacehighertaxeslatertopayfortheresultinggovernmentdebt,thuspeoplewillraisetheirownprivatesavingtooffsetthefallingovernmentsaving.

D)

cutstaxesandraisesitsdeficit,consumersanticipatethattheywillfacelowertaxeslatertopayfortheresultinggovernmentdebt,thuspeoplewillraisetheirownprivatesavingtooffsetthefallingovernmentsaving.

E)

cutstaxesandraisesitsdeficit,consumersanticipatethattheywillfacehighertaxeslatertopayfortheresultinggovernmentdebt,thuspeoplewillraisetheirownprivatesavingtooffsetthefallingovernmentsaving.

E24)

IntheUnitedStatesoverthepastfiftyyears,thefractionofGNPdevotedtoconsumptionhasfluctuatedinarangeofabout

A)

42to49percent.

B)

32to39percent.

C)

22to29percent.

D)

82to89percent.

E)

62to70percent.

B25)

IntheUnitedStates,(gross)investmenthasfluctuatedbetween________ofGNPinrecentyears.

A)

2and12percent

B)

12and22percent

C)

22and32percent

D)

32and42percent

E)

42and52percent

A26)

Governmentpurchasescurrentlytakeupabout

A)

19percentofU.S.GNP,andthissharehasnotchangedmuchsincethelate1950s.

B)

38percentofU.S.GNP,andthissharehasnotchangedmuchsincethelate1950s.

C)

18percentofU.S.GNP,andthissharehasbeenincreasingsincethelate1950s.

D)

18percentofU.S.GNP,andthissharehasbeendecreasingsincethelate1950s.

E)

Noneoftheabove.

B

27)ThepositionoftheUnitedStatescurrentaccountbalancein2007was

A)

lentover6percentofitsGNP,resultinginalargecurrentaccountsurplus.

B)

borrowedover6percentofitsGNP,leadingtoalargecurrentaccountdeficit.

C)

achievedacurrantaccountbalanceofzero.

D)

borrowedover10percentofitsGNP,leadingtoalargecurrentaccountdeficit.

E)

Noneoftheabove.

E28)

Whichoneofthefollowingstatementsisfalse?

A)

TheUnitedStateshadaccumulatedsubstantialforeignwealthbytheearly1980s.

B)

The1980switnessedasustainedcurrentaccountdeficitofproportionsunprecedentedinthetwentiethcenturyopenedup.

C)

In1987,thecountrybecameanetdebtortoforeignersforthefirsttimesinceWorldWarI.

D)

U.S.foreigndebthascontinuedtogrowandnowstandsat25percentofGNP.

E)

TheU.S.foreigndebtwaspaidoffinthe1990s,allowingtheU.S.toattainacurrentaccountsurplus.However,thedeficithasreturnedinrecentyears.

12.3

TheBalanceofPaymentsAccounts

B1)

Everyinternationaltransactionautomaticallyentersthebalanceofpayments

A)

onceeitherasacreditorasadebit.

B)

twice,onceasacreditandonceasadebit.

C)

onceasacredit.

D)

twice,bothtimesasdebit.

E)

Noneoftheabove.

A2)

Theofficialsettlementsbalanceorbalanceofpaymentsisthesumof

A)

thecurrentaccountbalance,thecapitalaccountbalance,thenonreserveportionofthefinancialaccountbalance,thestatisticaldiscrepancy.

B)

thecurrentaccountbalanceandthecapitalaccountbalance.

C)

thecurrentaccountbalance,thecapitalaccountbalance,thenonreserveportionofthefinancialaccountbalance.

D)

thecurrentaccountbalanceandthenonreserveportionofthefinancialaccountbalance.

E)

Noneoftheabove.

E

3)AnAmericanbuysaJapanesecar,payingbywritingacheckonanaccountwithabankinNewYork.Howwouldthisbeaccountedforinthebalanceofpayments?

A)

currentaccount,aJapanesegoodimport

B)

currentaccount,aU.S.goodimport

C)

financialaccount,aU.S.assetimport

D)

financialaccount,aU.S.assetexport

E)

OnlyBandD.

D4)

TheUnitedStatesissuesa$10,000debtforgivenesstoArgentina.Howisthisaccountedforinthebalanceofpayments?

A)

financialaccount,U.S.assetimport

B)

currentaccount,Argentinatransferpayment

C)

currentaccount,U.S.serviceexport

D)

financialaccount,U.S.assetexport

E)

currentaccount,Argentinagoodimport

A5)

AU.S.citizenbuysanewlyissuedshareofstockinEngland,payingforhisorderwithacheck,whichtheBritishcompanydepositsinitsownU.S.bankaccountinNewYork.Howisthistransactionaccountedforinthebalanceofpayments?

A)

financialaccount,U.S.assetexport

B)

currentaccount,U.S.serviceimport

C)

currentaccount,Britishgoodexport

D)

financialaccount,Britishassetimport

E)

financialaccount,U.S.assetimport

C6)

YoutraveltoParisandpayfora$100dinnerwithyourcreditcard.Howisthisaccountedforinthebalanceofpayments?

A)

currentaccount,Frenchserviceimport

B)

currentaccount,U.S.goodexport

C)

financialaccount,U.S.assetexport

D)

financialaccount,U.S.assetimport

E)

Noneoftheabove.

C7)

TheGermangovernmentcarriesoutanofficialforeignexchangeinterventioninwhichitusesdollarsheldinanAmericanbanktobuyFrenchcurrencyfromitscitizens.Howisthisaccountedforinthebalanceofpayments?

A)

currentaccount,Frenchgoodexport

B)

currentaccount,Germangoodimport

C)

financialaccount,Frenchassetexport

D)

financialaccount,Germanassetexport

E)

Alloftheabove

E8)TheearningsofaSpanishfactorywithBritishownersare

A)

countedinSpain'sGDP.

B)

arepartofBritain'sGNP.

C)

arecountedinBritain'sGDP.

D)

arepartofSpain'sGNP.

E)

OnlyAandB.

C9)

TheservicesBritishcapitalprovidesinSpainareaserviceexportfromBritain,

A)

thereforetheyaresubtractedfromBritishGDPincalculatingBritishGNP.

B)

thereforetheyareaddedtoSpanishGDPincalculatingSpanishGDP.

C)

thereforetheyareaddedtoBritishGDPincalculatingBritishGNP.

D)

OnlyAandB.

E)

Noneoftheabove.

E10)

Unilateraltransfersbetweencountriesare

A)

long-termloans.

B)

internationalgifts,orpaymentsthatdonotcorrespondtothepurchaseofanygood,service,orasset.

C)

partofthecurrentaccountbutnotapartofnationalincome.

D)

thedifferencebetweenYandGNPiftheidentityY=C+I+G+CAholdsexactly.

E)

BothBandD.

D11)

Whichofthefollowingstatementsaboutthecentralbankistrue?

A)

Onlythecentralbankmayholdforeignreservesandinterveneofficiallyinexchangemarkets.

B)

Centralbankshavelittlepowertoaltermacroeconomicconditions.

C)

Today,centralbanks'reservesconsistlargelyofgold.

D)

TheFederalReserveholdsonlyasmalllevelofofficialreserveassetsotherthangold.

E)

BothBandCaretrue.

A12)

Howdoweallocatestatisticaldiscrepancyamongthecurrent,capital,andfinancialaccounts?

A)

Wehavenowayofknowingexactlyhowtoallocatethisdiscrepancy.

B)

Dependonthedegreeofcertaintybywhichweattributetotheseaccounts.

C)

Divideitevenlyamongstthethreeaccounts.

D)

Dependontheconventionadoptedbythespecificfinancialinstitution.

E)

Statisticaldiscrepancysignalshumanerrorsmadewhendealingwithfinancialaccounts.

C

13)Whichofthefollowingistrueaboutcurrentcostmethodandmarketvaluemethod?

A)

TheyareusedbytheBEAtoplacecurrentvaluesonforeignindirectinvestments.

B)

Thesemethodsleadtothesamevaluations.

C)

Basedonthecurrentcostmethod,theBEA's2006estimateofU.S.netforeignwealthwas$2,539.6billion.

D)

CurrentcostmethodispreferredbytheBEA.

E)

Noneoftheaboveistrue.

13.1

ExchangeRatesandInternationalTransactions

D1)

HowmanydollarswoulditcosttobuyanEdinburghWoolenMillsweatercosting50Britishpoundsiftheexchangerateis1.25dollarsperoneBritishpound?

A)

50dollars

B)

60dollars

C)

70dollars

D)

62.5dollars

E)

40Britishpounds

E2)

HowmanydollarswoulditcosttobuyanEdinburghWoolenMillsweatercosting50Britishpoundsiftheexchangerateis1.50dollarsperoneBritishpound?

A)

50dollars

B)

60dollars

C)

70dollars

D)

80dollars

E)

75dollars

B3)

HowmanydollarswoulditcosttobuyanEdinburghWoolenMillsweatercosting50Britishpoundsiftheexchangerateis1.80dollarsperoneBritishpound?

A)

40dollars

B)

90dollars

C)

50dollars

D)

100dollars

E)

95dollars

B4)

TheJapanesecurrencyiscalledthe

A)

DM.

B)

Yen.

C)

Euro.

D)

Dollar.

E)

Pound.

C5)

HowmanyBritishpoundswoulditcosttobuyapairofAmericandesignerjeanscosting$45iftheexchangerateis1.50dollarsperBritishpound?

A)

10Britishpounds

B)

20Britishpounds

C)

30Britishpounds

D)

35Britishpounds

E)

25Britishpounds

B6)

HowmanyBritishpoundswoulditcosttobuyapairofAmericandesignerjeanscosting$45iftheexchangerateis1.80dollarsperBritishpound?

A)

10Britishpounds

B)

25Britishpounds

C)

20Britishpounds

D)

30Britishpounds

E)

40Britishpounds

A7)

HowmanyBritishpoundswoulditcosttobuyapairofAmericandesignerjeanscosting$45iftheexchangerateis2.00dollarsperBritishpound?

A)

22.5Britishpounds

B)

32.5Britishpounds

C)

12.5Britishpounds

D)

40Britishpounds

E)

30Britishpounds

B8)

HowmanyBritishpoundswoulditcosttobuyapairofAmericandesignerjeanscosting$45iftheexchangerateis1.60dollarsperBritishpound?

A)

38.125Britishpounds

B)

28.125Britishpounds

C)

48.125Britishpounds

D)

58.125Britishpounds

E)

18.125Britishpounds

B9)

WhatistheexchangeratebetweenthedollarandtheBritishpoundifapairofAmericanjeanscosts50dollarsinNewYorkand100PoundsinLondon?

A)

1.5dollarsperBritishpound

B)

0.5dollarsperBritishpound

C)

2.5dollarsperBritishpound

D)

3.5dollarsperBritishpound

E)

2dollarsperBritishpound

E10)

WhatistheexchangeratebetweenthedollarandtheBritishpoundifapairofAmericanjeanscosts60dollarsinNewYorkand30PoundsinLondon?

A)

1.5dollarsperBritishpound

B)

0.5dollarsperBritishpound

C)

2.5dollarsperBritishpound

D)

3.5dollarsperBritishpound

E)

2dollarsperBritishpound

E

11)Whenacountry'scurrencydepreciates,

A)

foreignersfindthatitsexportsaremoreexpensive,anddomesticresidentsfindthatimportsfromabroadaremoreexpensive.

B)

foreignersfindthatitsexportsaremoreexpensive,anddomesticresidentsfindthatimportsfromabroadarecheaper.

C)

foreignersfindthatitsexportsarecheaper;however,domesticresidentsarenotaffected.

D)

foreignersarenotaffected,butdomesticresidentsfindthatimportsfromabroadaremoreexpensive.

E)

Noneoftheabove.

D12)

Anappreciationofacountry'scurrency,

A)

decreasestherelativepriceofitsexportsandlowerstherelativepriceofitsimports.

B)

raisestherelativepriceofitsexportsandraisestherelativepriceofitsimports.

C)

lowerstherelativepriceofitsexportsandraisestherelativepriceofitsimports.

D)

raisestherelativepriceofitsexportsandlowerstherelativepriceofitsimports.

E)

Noneoftheabove.

A13)

Whichoneofthefollowingstatementsisthemostaccurate?

A)

Adepreciationofacountry'scurrencymakesitsgoodscheaperforforeigners.

B)

Adepreciationofacountry'scurrencymakesitsgoodsmoreexpensiveforforeigners.

C)

Adepreciationofacountry'scurrencymakesitsgoodscheaperforitsownresidents.

D)

Adepreciationofacountry'scurrencymakesitsgoodscheaper.

E)

Noneoftheabove.

C14)

Whichofthefollowingstatementsisthemostaccurate?

A)

TheU.S.andCanadiandollarhavetradedroughlyatparsince1970.

B)

Theexchangerate(U.S.$perCanadian$)hasalwaysbeenlessthanonesince1970.

C)

TheU.S.andCanadiandollartradedroughlyatparintheearly1970sandasof2006,isnearingparastheCanadiandollarrises.

D)

TheU.S.andCanadiandollartradedroughlyatparintheearly1970sandasof2006,isnearingparastheCanadiandollarfalls.

E)

Noneoftheabove.

A15)

Ifthegoods'moneypricesdonotchange,anappreciationofthedollaragainstthepound

A)

makesBritishsweaterscheaperintermsofAmericanjeans.

B)

makesBritishsweatersmoreexpensiveintermsofAmericanjeans.

C)

doesn'tchangetherelativepriceofsweatersandjeans.

D)

makesAmericanjeanscheaperintermsofBritishsweaters.

E)

Noneoftheabove.

B

16)Ifthegoods'moneypricesdonotchange,adepreciationofthedollaragainstthepound

A)

makesBritishsweaterscheaperintermsofAmericanjeans.

B)

makesBritishsweatersmoreexpensiveintermsofAmericanjeans.

C)

makesAmericanjeansmoreexpensiveintermsofBritishsweaters.

D)

doesn'tchangetherelativepriceofsweatersandjeans.

E)

Noneoftheabove.

13.2

TheForeignExchangeMarket

B1)

Thelargesttradingofforeignexchangeoccursin

A)

NewYork.

B)

London.

C)

Tokyo.

D)

Frankfurt.

E)

Singapore.

C

2)Whichofthefollowingtypeoffundscatertowealthyindividuals,arenotboundbygovernmentregulations,andareactivelytradedinforeignexchangemarkets?

A)

Pensionfunds

B)

Mutualfunds

C)

Hedgefunds

D)

Exchangefunds

A3)

Thefuturedateonwhichthecurrenciesareactuallyexchangediscalledwhat?

A)

thevaluedate

B)

thespotexchangedate

C)

thetwo-daywindow

D)

thecommitmentdate

E)

Noneoftheabove.

E4)

In2004

A)

20percentofforeignexchangetransactionsinvolvedexchangesofforeigncurrenciesforU.S.dollars.

B)

10percentofforeignexchangetransactionsinvolvedexchangesofforeigncurrenciesforU.S.dollars.

C)

30percentofforeignexchangetransactionsinvolvedexchangesofforeigncurrenciesforU.S.dollars.

D)

40percentofforeignexchangetransactionsinvolvedexchangesofforeigncurrenciesforU.S.dollars.

E)

90percentofforeignexchangetransactionsinvolvedexchangesofforeigncurrenciesforU.S.dollars.

D5)

Whichoneofthefollowingstateme