B321 MA09 Recap Quiz DL

In a floating exchange rate regime, a currency's value is determined by market demand and supply.

• True

• False

If the Singapore Dollar has become weaker, it has _______.

• Appreciated

• Depreciated

A rise in Singapore's interest rate relative to other countries will lead to inflow of 'hot' money into Singapore.

• True

• False

An inflow of 'hot' money into Singapore will lead to a decrease in demand for Singapore Dollar (SGD).

• True

• False

If Singapore's exports become more expensive, demand for Singapore Dollar (SGD) will _______.

• Increase

• Decrease

An increase in supply of Singapore Dollar (SGD) will lead to ______ of SGD.

• Appreciation

• Depreciation

An increase in demand for Singapore Dollar (SGD) will lead to _____ of SGD.

• Appreciation

• Depreciation

During a recession, a country's government may try to boost exports and investments by letting its currency ______.

• Appreciate

• Depreciate

In an overheating economy with rising inflation rates, a stronger currency may help to reduce inflationary pressures.

• True

• False