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Macroeconomics - p.405-426

Total questions: 10

Worksheet time: 9mins

Name
Class
Date
1.

A country’s ___________ are a summary of the country’s transactions with other countries.

a)

Balance of Payments Accounts

b)

Balance of Payments on the Current Account

c)

Balance of Payments on Goods and Services

d)

Balance of Payments on the Financial Account

2.

A country’s ___________, or the ___________, is its balance of payments on goods and services plus net international transfer payments and factor income.

a)

Balance of Payments on the Current Account; Current Account

b)

Merchandise Trade Balance; Trade Balance

c)

Balance of Payments on the Financial Account; Financial Account

d)

Balance of Payments on Goods and Services; Goods and Services Account

3.

A country’s ___________ is the difference between the value of its exports and the value of its imports during a given period.

a)

Balance of Payments on Goods and Services

b)

Balance of Payments on the Current Account

c)

Balance of Payments on the Financial Account

d)

Balance of Payments Accounts

4.

The ___________, or ___________, is the difference between a country’s exports and imports of goods.

a)

Merchandise Trade Balance; Trade Balance

b)

Balance of Payments Accounts; Payment Balance

c)

Balance of Payments on the Current Account; Current Account

d)

Balance of Payments on the Financial Account; Financial Account

5.

A country’s ___________, or simply the ___________, is the difference between its sales of assets to foreigners and its purchases of assets from foreigners during a given period.

a)

Balance of Payments on the Financial Account; Financial Account

b)

Balance of Payments on the Current Account; Current Account

c)

Merchandise Trade Balance; Trade Balance

d)

Balance of Payments on Goods and Services; Goods and Services Account

6.

Currencies are traded in the ___________. The prices at which currencies trade are known as ___________.

a)

Foreign Exchange Market; Exchange Rates

b)

Merchandise Trade Balance; Trade Balance

c)

Currency Market; Exchange Rates

d)

Currency Exchange Market; Currency Rates

7.

When a currency becomes more valuable in terms of other currencies, it ___________, and when it becomes less valuable in terms of other currencies, it ___________.

a)

Appreciates; Depreciates

b)

Decreases; Increases

c)

Depreciates; Appreciates

8.

The ___________ is the exchange rate at which the quantity of a currency demanded in the foreign exchange market is equal to the quantity supplied.

a)

Equilibrium Exchange Rate

b)

Stable Exchange Rate

c)

Currency Rate of Equilibrium

d)

Currency Demand Rate

9.

___________ are exchange rates adjusted for international differences in aggregate price levels.

a)

Real Exchange Rates

b)

Nominal Exchange Rates

c)

Aggregate Exchange Rates

d)

Disaggregate Exchange Rates

10.

The ___________ between two countries’ currencies is the nominal exchange rate at which a given basket of goods and services would cost the same amount in each country.

a)

Purchasing Power Parity

b)

CPI Currency Rate

c)

Nominal Exchange Rate

d)

Aggregate Exchange Rate