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Exchange rate

Total questions: 10

Worksheet time: 13mins

Name
Class
Date
1.

What is a decrease in the value of a currency?

a)

appreciation

b)

depreciation

c)

exchange rate

d)

inflation

2.

What is the value of a nations currency in relation to a foreign country?

a)

Trade Deficit

b)

Foreign Exchange Market

c)

Exchange Rate

d)

Trade Surplus

3.

Whats the relationship between the value of a country's exports and the value of its imports?

a)

Trade Surplus

b)

Balance of Trade

c)

Trade Deficit

d)

Appreciation

e)

Depreciation

4.

What is the increase in the value of a currency?

a)

Exchange Rate

b)

Recession

c)

Absolute Advantage

d)

Appreciation

5.

What does it mean when an economist says a currency is stronger?

a)

It can be exchanged for more of a lesser foreign currency

b)

It can be converted to prices in any currency

c)

There are few things it could buy

d)

It will buy fewer foreign goods

6.

How do you convert U.S. Dollars into another country.

a)

Multiply the exchange rate by # of units

b)

Multiply the # of dollars by the # of units of the other currency, per dollar

c)

Divide the exchange rate by the # of units of other currency

d)

Divide # of dollars by # of units

7.

What is the result of a nation exporting more than they import?

a)

Trade Deficit

b)

Trade Surplus

c)

Balance of Trade

d)

Trade War

8.

What is the relationship between a nations imports and exports?

a)

Free Trade

b)

Trade Barrier

c)

Trade Deficit

d)

Balance of Trade

9.

What is the result of a nation importing more than it exports?

a)

Trade Surplus

b)

Free Trade Zone

c)

Trade Deficit

d)

Trade Barrier

10.

The exchange rate between 2 countries is determined by,

a)

Supply and Demand

b)

Inflation/Interest Rates

c)

Balance Trade

d)

Fixed Percentage