Eco Unit 11 Exchange Rates Quiz
AP Economics -- Exchange Rates Quiz -- Do Not Write On This Booklet!!!
1. U.S. export transactions create:
A) a U.S. demand for foreign monies and the satisfaction of this demand decreases the supplies of dollars held by foreign banks. B) a U.S. demand for foreign monies and the satisfaction of this demand increases the supplies of dollars held by foreign banks. C) a foreign demand for dollars and the satisfaction of this demand decreases the supplies of foreign monies held by U.S. banks. D) a foreign demand for dollars and the satisfaction of this demand increases the supplies of foreign monies held by U.S. banks. 2. U.S. import transactions create:
A) a foreign demand for dollars and the satisfaction of this demand decreases the supplies of foreign monies held by U.S. banks. B) a foreign demand for dollars and the satisfaction of this demand increases the supplies of foreign monies held by U.S. banks. C) a U.S. demand for foreign monies and the satisfaction of this demand decreases the supplies of foreign monies held by
U.S. banks.
D) a U.S. demand for foreign monies and the satisfaction of this demand increases the supplies of dollars held by foreign banks. 3. If a U.S. importer can purchase 10,000 pounds for $20,000, the rate of exchange is:
A) $1 = 2 pounds in the United States.
B) $2 = 1 pound in the United States.
C) $1 = 2 pounds in Great Britain.
D) $.5 = 1 pound in Great Britain.
4. Other things equal, the financing of a U.S. export transaction:
A) reduces U.S. interest rates.
B) decreases the supplies of foreign currency held by United States banks.
C) decreases GDP in the United States.
D) increases the supplies of foreign currency held by U.S. banks.
5. Other things equal, the financing of a U.S. import transaction:
A) increases the supplies of foreign currency held by United States banks.
B) increases U.S. interest rates.
C) decreases the supplies of foreign currency held by U.S. banks.
D) increases GDP in the United States.
6. The current account in
1. U.S. export transactions create:
A) a U.S. demand for foreign monies and the satisfaction of this demand decreases the supplies of dollars held by foreign banks. B) a U.S. demand for foreign monies and the satisfaction of this demand increases the supplies of dollars held by foreign banks. C) a foreign demand for dollars and the satisfaction of this demand decreases the supplies of foreign monies held by U.S. banks. D) a foreign demand for dollars and the satisfaction of this demand increases the supplies of foreign monies held by U.S. banks. 2. U.S. import transactions create:
A) a foreign demand for dollars and the satisfaction of this demand decreases the supplies of foreign monies held by U.S. banks. B) a foreign demand for dollars and the satisfaction of this demand increases the supplies of foreign monies held by U.S. banks. C) a U.S. demand for foreign monies and the satisfaction of this demand decreases the supplies of foreign monies held by
U.S. banks.
D) a U.S. demand for foreign monies and the satisfaction of this demand increases the supplies of dollars held by foreign banks. 3. If a U.S. importer can purchase 10,000 pounds for $20,000, the rate of exchange is:
A) $1 = 2 pounds in the United States.
B) $2 = 1 pound in the United States.
C) $1 = 2 pounds in Great Britain.
D) $.5 = 1 pound in Great Britain.
4. Other things equal, the financing of a U.S. export transaction:
A) reduces U.S. interest rates.
B) decreases the supplies of foreign currency held by United States banks.
C) decreases GDP in the United States.
D) increases the supplies of foreign currency held by U.S. banks.
5. Other things equal, the financing of a U.S. import transaction:
A) increases the supplies of foreign currency held by United States banks.
B) increases U.S. interest rates.
C) decreases the supplies of foreign currency held by U.S. banks.
D) increases GDP in the United States.
6. The current account in