Quiz Week 5 Review

What are credit scores used for?

• To determine how likely someone is to repay a loan on time (better repayment history = lower interest rates).
• To determine how much money someone has (more money = lower interest rates).
• To determine how good of a job someone has (better job = lower interest rates).
• To determine how much income someone has (higher income = lower interest rates).

Which of the following are used to determine your FICO credit score?

• Payment history (making loan payments on time).
• Your monthly income (how much money you make).
• Length of credit history (how long you have been borrower money).
• Amount of credit you have (how many loans you have).

A country lets the value of its currency be determined by market forces (supply/demand). What kind of exchange rate does this country have?

• Fixed exchange rate.
• Gold standard.
• Floating exchange rate.
• Bretton Woods system.

A country keeps the value of its currency stable by buying/selling reserves of money (tying the value of their currency to other currencies). What kind of exchange rate does this country have?

• Fixed exchange rate.
• Adjustable exchange rate.
• Floating exchange rate.

What concept is described the attached image?

• Appreciation
• Depreciation
• Surplus
• Deficit

What concept is described the attached image?

• Appreciation
• Depreciation
• Surplus
• Deficit

When a countries currency appreciates, who benefits (who will make more money)?

• Importers
• Exporters

A country that has a protectionist attitude towards trade would be more likely to do all of the following EXCEPT:

• Have a trade embargo.
• Have a trade quota.
• Have a free trade agreement
• Have high tariffs.

Exchange Rate: £1.00 (British Pounds) = $1.29 (USD) A sandwich costs $4.00 (USD). How much would this cost in British Pounds? (Tip: Think of the exchange rate as a ratio of £'s to $'s )

In June 2024, £1.00 British Pound was worth $1.26 US Dollars. In July 2024, £1.00 British Pound was worth $1.29 US Dollars. Did the British Pound appreciate or depreciate compared to the US Dollar?

• Appreciate
• Depreciate