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Worksheets

Exchange Rates

Total questions: 10

Worksheet time: 10mins

Name
Class
Date
1.

Identify the reason for the change in the AUD.

a)

Increase in demand for AUS exports

b)

Increase in demand for US imports

c)

Decrease in demand for US imports

d)

Decrease in demand for AUS exports

2.

All of the following would result in the change shown in AUD, except for?

a)

Increase in demand for AUS exports

b)

Increase in Australian interest rates

c)

Speculation that the AUD is going to increase

d)

Increase in inflation in Australia

3.

Identify the reason for the change in the AUD shown.

a)

Increase in AUS exports

b)

Decrease in overseas interest rates

c)

Increase in imports into AUS

d)

Decrease in Australian investment abroad

4.

Identify the TWO impacts on the demand and supply of the AUD.

a)

Decrease in demand for AUD

b)

Increase in demand for AUD

c)

Decrease in supply of AUD

d)

Increase in supply of AUD

5.

Identify the impact on the AUD.

a)

Appreciation

b)

Depreciation

c)

Both an appreciation and depreciation

d)

Neither an appreciation and depreciation

6.

All of the following will occur as a result of an increase in commodity prices, except for?

a)

Export prices increase

b)

Demand for the AUD increases

c)

Appreciation of the AUD

d)

Depreciation of the AUD

7.

Assume the AUD begins at point A. Where is the new equilibrium if there is an increase in demand for the AUD?

a)

A

b)

B

c)

C

d)

D

8.

Assume the AUD begins at point A. Where is the new equilibrium if there is a decrease in imports into Australia?

a)

A

b)

B

c)

C

d)

D

9.

Assume the AUD begins at point A. Where is the new equilibrium if there is an increase in interest rates in Australia and a decrease in Australian investment overseas?

a)

A

b)

B

c)

C

d)

D

10.

Select TWO correct statements.

a)

An appreciation is beneficial for importers

b)

An appreciation is beneficial for exporters

c)

A depreciation is beneficial for importers

d)

A depreciation is beneficial for exporters