IB Quiz 3

Answer the next question on the basis of the following information: In 1999 the exchange rate between the US dollar and the British pound was $1 = £1; in 2002, the rate was $1 = £0.5. Between 1999 and 2002 the

Pound appreciated in value relative to the dollar.

by definitions euro-dollars are which of the following?

Time deposits in foreign banks denominated in US dollars rather than the currency of the country in which they are deposited

if American business buys mount Fuji, the transaction would be recorded as?

a debit in the financial account of the US BOP

If more American citizens chose to vacation in Britain, this woulda managed float

appreciate the value of the pound relative to the dollar

In 1999 the exchange rate between the US dollar and the British pound was $1 = £1; in 2002, the rate was $1 = £0.5. Which of the following might be a plausible explanation for the change in the dollar-pound exchange rate cited in the previous question?

The UK exported far more to the US during this period than it imported from the US.

the current international monetary system is best described as?

a managed float