Australian Dollar Quiz

An increase in overseas growth rates will:

• Lead to a decrease in demand and a deprecation of the AUD

• Lead to an increase in demand and an appreciation of the AUD

• Lead to a decrease in supply and an appreciation of the AUD

• Lead to an increase in supply and a deprecation of the AUD

A decrease in unemployment rates in Australia will:

• Lead to a decrease in demand and a deprecation of the AUD

• Lead to an increase in demand and an appreciation of the AUD

• Lead to a decrease in supply and an appreciation of the AUD

• Lead to an increase in supply and a deprecation of the AUD

A decrease in the price of coal and iron will:

• Lead to a decrease in demand and a deprecation of the AUD

• Lead to an increase in demand and an appreciation of the AUD

• Lead to a decrease in supply and an appreciation of the AUD

• Lead to an increase in supply and a deprecation of the AUD

A decrease in oil prices will:

• Lead to a decrease in demand and a deprecation of the AUD

• Lead to an increase in demand and an appreciation of the AUD

• Lead to a decrease in supply and an appreciation of the AUD

• Lead to an increase in supply and a deprecation of the AUD

An increase in borrowing from both the private sector and Australian government will:

• Lead to a decrease in demand and a deprecation of the AUD

• Lead to an increase in demand and an appreciation of the AUD

• Lead to a decrease in supply and an appreciation of the AUD

• Lead to an increase in supply and a deprecation of the AUD

Which of the following best explains why the demand curve for the AUD slopes downwards

• There is more demand for the AUD due to stronger overseas growth rates

• At lower values of the AUD there is more demand for Australian exports as it is cheaper for foreign citizens to purchase our products

• At lower values of the AUD there is less demand for Australian exports as it is dearer for foreign citizens to purchase our products

• At higher values of the AUD there is more supply of the AUD as it is cheaper for Australians to purchase imported products

Which of the following best explains why the supply curve for the AUD slopes upwards

• There is more demand for the AUD due to stronger overseas growth rates

• At lower values of the AUD there is more demand for Australian exports as it is cheaper for foreign citizens to purchase our products

• At lower values of the AUD there is less demand for Australian exports as it is dearer for foreign citizens to purchase our products

• At higher values of the AUD there is more supply of the AUD as it is cheaper for Australians to purchase imported products

An appreciation of a currency will:

• decrease the price of exports

• increase the price of imports

• increase export earnings

• decrease the price of imports

Which of the following is most likely to increase the supply of Australian dollars on the foreign exchange market?

• An increase in imports into Australia

• A decrease in exports from Australia

• A decrease in imports into Australia

• An increase in exports from Australia

With a floating exchange rate, an appreciation of the Australian dollar will most likely result from:

• an increase in expenditure by Australian tourists overseas.

• international businesses lending more to Australian businesses.

• an increase in interest paid to overseas lenders.

• trading partners spending less on Australian exports.