CAD, CAS and Exchange rates - Balance of Payments

CAD, CAS and Exchange rates - Balance of Payments

10th Grade

10 Qs

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CAD, CAS and Exchange rates - Balance of Payments

CAD, CAS and Exchange rates - Balance of Payments

Assessment

Quiz

Other

10th Grade

Practice Problem

Hard

Created by

Abhi shek

Used 4+ times

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10 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

20 sec • 1 pt

What is the impact of an appreciation of a country's currency on its current account?

It leads to a current account deficit.
It leads to a current account surplus.
It has no impact on the current account.
The impact depends on other economic factors.

2.

MULTIPLE CHOICE QUESTION

20 sec • 1 pt

How does a depreciation of a country's currency affect its trade balance?

It leads to an increase in exports and a current account surplus.
It leads to a decrease in exports and a current account deficit.
It has no impact on trade balance.
It reduces imports and increases the current account surplus.

3.

MULTIPLE CHOICE QUESTION

20 sec • 1 pt

In the context of exchange rates, what does a trade surplus indicate about a country's currency?

It is likely to appreciate.
It is likely to depreciate.
There is no impact on the currency.
It depends on other economic factors.

4.

MULTIPLE CHOICE QUESTION

20 sec • 1 pt

How does a fixed exchange rate system influence a country's current account?

It tends to reduce trade imbalances.
It leads to more flexible trade balances.
It has no impact on trade balances.
It tends to increase trade imbalances.

5.

MULTIPLE CHOICE QUESTION

20 sec • 1 pt

What is the relationship between interest rates and the current account?

Higher interest rates lead to a current account surplus.
Higher interest rates lead to a current account deficit.
Interest rates have no impact on the current account.
Interest rates only affect capital flows, not the current account.

6.

MULTIPLE CHOICE QUESTION

20 sec • 1 pt

How does a preference for imported luxury goods impact a country's trade balance?

It contributes to a trade surplus.
It contributes to a trade deficit.
It has no impact on the trade balance.
It depends on the overall economic conditions.

7.

MULTIPLE CHOICE QUESTION

20 sec • 1 pt

During an economic recession, what is the likely impact on a country's trade balance?

It leads to a trade surplus.
It leads to a trade deficit.
Economic recessions have no impact on trade balances.
It depends on the specific industries affected by the recession.

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