IB Economics - Exchange rates

IB Economics - Exchange rates

University

12 Qs

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IB Economics - Exchange rates

IB Economics - Exchange rates

Assessment

Quiz

Other

University

Practice Problem

Medium

Created by

Raquel Ramos

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12 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is an advantage of a floating exchange rate?

There is no advantadge

Interest rates are free to be employed to domestic goals

Reduced speculation from foreign investors

High consumer and business confidence

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is not a type of exchange rate?

Fixed Exchange Rates

Floating Exchange Rates

Secure Exchange Rates

Managed Exchange Rates

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of these only has an indirect effect on exchange rates?

Higher domestic demand

Selling of foreign currency by private agents

Central banking selling foreign reserves

4.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

If 1 USD costs 4 BRL (1 BRL=0.25 USD) and the BRL depreciates the new exchange rate could be

1 BRL = 0.10 USD

1 BRL = 0.50 USD

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

A depreciation of a country's currency means for this country's residents that imported goods are

Cheaper

More expensive

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

An appreciation of a country's currency means that for foreigners this country's goods are

Cheaper

More expensive

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The impact of a country's exchange rate appreciation in its current account balance is

Negative

Positive

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