exchange rates

What happens if the government increases the supply of national currency on FOREX

• appreciation

• depreciation

• revaluation

• devaluation

most of countries use what type of exchange rate system?

• floating

• fixed

• funny

• managed

which from the below are not considered to be advantages of high exchange rate? multiple choice

• greater exports

• cheaper imports

• improved quality of domestically produced goods

• inflationary pressure

What happens when US inflation rates are higher than in EU?

• US exports increase

• EURO exchange rate in terms of USD increases

• Imports from EU are more competitive

• Prospects for savings in EU are improving

What happens if US interest rates increase?

• prospects for saving in US improve

• USD appreciates

• USD depreciates

• EU investment prospects improve

HL: USD is currently worth 0.8EUR,

What is the rate for 1EUR in terms of USD?

• 2 USD

• 0.5 USD

• 1.25 USD

• 1.45 USD

What are the advantages of low exchange rate?

• Greater exports

• Greater imports

• Inflationary pressure

• unemployment

Which from the below are not disadvantages of fixed exchange rate?

• business confidence

• worsening of international relations

• misuse of manipulating interest rates

• price stability