AP Macro Foreign Exchange

AP Macro Foreign Exchange

12th Grade

15 Qs

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AP Macro Foreign Exchange

AP Macro Foreign Exchange

Assessment

Quiz

Social Studies

12th Grade

Hard

Created by

John Robinson

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15 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

Which of the following is true regarding international trade

A country that exports more than it imports has a trade deficit

A country that exports more than 30% of their GDP has a trade surplus

A deficit in the current account is offset by a surplus in the capital and financial account

A country that exports more than it imports will have a financial account surplus

A country with a trade deficit will have a current account surplus

2.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

Suppose price level increases more in the United States than it does in Indonesia. What is the short-run impact on U.S. net exports, the value of the U.S. dollar, and the value of the Indonesian rupee?

Net Exports / U.S. dollar / Indonesian rupee

Increase / depreciate / depreciate

Net Exports / U.S. dollar / Indonesian rupee

Decrease / depreciate / appreciate

Net Exports / U.S. dollar / Indonesian rupee

Increase / depreciate / appreciate

Net Exports / U.S. dollar / Indonesian rupee

Decrease / appreciate / depreciate

Net Exports / U.S. dollar / Indonesian rupee

Increase / appreciate / depreciate

3.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

Which of the following is an example of direct foreign investment?

An increase in the demand for US dollars by foreigners

A decrease in the supply of US dollars by Americans

The purchase of American planed by a Mexican company

The sale of financial service to a foreign investor by a US bank

A Chinese company buying a microprocessor factory in Korea

4.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

Which of the following would definitely move a country toward a current account deficit?

An increase in exports

An increase in imports

An larger capital account deficit

An increase in capital outflow

A decrease in foreign aid provided to other countries

5.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

Exchange Rate

The market determines the value of the country’s currency

The government activity manages the country’s currency

The increase of value of a country's currency with respect to a foreign currency (becomes stronger)

The loss of value of a country's currency with respect to a foreign currency (becomes weaker)

The price of one currency in terms of the other currency

6.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

Depreciation

The market determines the value of the country’s currency

The government activity manages the country’s currency

The increase of value of a country's currency with respect to a foreign currency (becomes stronger)

The loss of value of a country's currency with respect to a foreign currency (becomes weaker)

The price of one currency in terms of the other currency

7.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

Appreciation

The market determines the value of the country’s currency

The government activity manages the country’s currency

The increase of value of a country's currency with respect to a foreign currency (becomes stronger)

The loss of value of a country's currency with respect to a foreign currency (becomes weaker)

The price of one currency in terms of the other currency

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