SIE Exam Unit 14 - Issues

U.S. ________________ should increase when foreigners have greater purchasing power.

Exports

U.S. ____________________ should increase when foreign currency is stronger than the dollar

Exports

U.S. ____________________ should increase when their currency is stronger than the dollar

Exports

When the U.S. dollar is weak against foreign currencies, U.S goods are more affordable for foreign buyers; therefore, U.S. ___________________ will increase

Exports

When the U.S. dollar is weak against foreign currencies, U.S. __________________ will increase

Exports

When the dollar is weak relative to other currencies, it makes U.S. goods more affordable for foreign consumers to buy, so U.S. _________________ increase

Exports

Represents the flow of money between the United States and other countries

Balance of Payments

The U.S. balance of payments deficit would decrease in all of the following scenarios except A) a decrease in imports of foreign goods into the United States. B) a decrease in purchases of U.S. securities by foreign investors. C) an increase in exports of domestic goods from the United States. D) a decrease in dividend payments by U.S. companies to foreign investors.

A decrease in purchases of U.S. securities by foreign investors

When the U.S. dollar is weak against foreign currencies, U.S goods are more _______________________ for foreign buyers; therefore, U.S. exports will increase

Affordable

When the dollar is strong, it is more ___________________ for U.S. consumers to buy more foreign goods, so U.S. imports increase

Affordable

When the dollar is weak relative to other currencies, it makes U.S. goods more ____________________ for foreign consumers to buy, so U.S. exports increase

Affordable

When the U.S. dollar is weak against foreign currencies, U.S. imports will _____________________

Decrease

Occurs in the balance of payments when more money is flowing out of the country than in.

Deficit

Periods of ___________________ tend to occur during recessions

Deflation

Of the statements listed, which best characterizes the potential impact of factors occurring outside our domestic economy and markets? A) Factors outside the United States can impact our securities and trade markets, but the effects are always short term and thus impact our domestic economy very little. B) Factors outside the United States never have immediate impact on our securities and trade markets, but over time can impact our domestic economy. C) Factors outside the United States have little impact on our securities and trade markets and thus our domestic economy. D) Factors outside the United States can have immediate and prolonged impact on our securities and trade markets and thus our domestic economy.

Factors outside the United States can have immediate and prolonged impact on our securities and trade markets and thus our domestic economy

When the dollar is strong, foreign currency buys ____________ U.S. goods

Fewer

When the U.S. dollar is weak against foreign currencies, U.S goods are more affordable for _____________________ buyers; therefore, U.S. exports will increase

Foreign

When the dollar is strong, it is more affordable for U.S. consumers to buy more __________________ goods, so U.S. imports increase

Foreign

If the U.S. dollar is weak against foreign currency, A) U.S. currency buys more foreign goods; therefore, U.S. exports will increase. B) U.S. currency buys less foreign goods; therefore, U.S. imports will increase. C) foreign currency buys more U.S. goods; therefore, U.S. exports will increase. D) foreign currency buys more U.S. goods; therefore, U.S. imports will increase.

Foreign Currency buys more U.S. goods; therefore, U.S. exports will increase

If the U.S. dollar is weak against foreign currency, A) foreign currency buys more U.S. goods; therefore, U.S. exports will increase. B) U.S. currency buys more foreign goods; therefore, U.S. exports will increase. C) foreign currency buys more U.S. goods; therefore, U.S. imports will increase. D) U.S. currency buys less foreign goods; therefore, U.S. imports will increase.

Foreign currency buys more U.S. goods; therefore, U.S. exports will increase

Exports from the United States would likely increase if I. the Japanese yen strengthened against the dollar. II. the U.S. dollar strengthened against the euro. III. the U.S. dollar weakened against the British pound. IV. the Swiss franc weakened against the dollar. A) I and III B) II and IV C) II and III D) I and IV

I & III

Exports from the United States would likely increase if I. the Japanese yen strengthened against the dollar. II. the U.S. dollar strengthened against the euro. III. the U.S. dollar weakened against the British pound. IV. the Swiss franc weakened against the dollar. A) II and III B) I and IV C) I and III D) II and IV

I & III

When the U.S. dollar is weak against foreign currencies, U.S. __________________ will decrease

Imports

When the dollar is strong, U.S. ______________ increase

Imports

When the dollar is strong, it is more affordable for U.S. consumers to buy more foreign goods, so U.S. ___________________ increase

Imports

U.S. exports should _________________ when foreigners have greater purchasing power.

Increase

U.S. exports should __________________ when their currency is stronger than the dollar

Increase

U.S. exports should ___________________ when foreign currency is stronger than the dollar

Increase

When the U.S. dollar is weak against foreign currencies, U.S goods are more affordable for foreign buyers; therefore, U.S. exports will ____________________

Increase

When the U.S. dollar is weak against foreign currencies, U.S. exports will ____________________

Increase

When the dollar is strong, U.S. imports _________________

Increase

When the dollar is weak relative to other currencies, it makes U.S. goods more affordable for foreign consumers to buy, so U.S. exports ____________________

Increase

Deflationary periods are characterized by all of the following except A) rising unemployment. B) a decline in prices. C) increased consumer demand. D) coinciding with recessions.

Increased Consumer Demand

Match the following statement to the best expression: A well-controlled, moderately increasing money supply leads to price stability and a healthy economy. A) Socialism B) Balance of payments C) Keynesian Theory D) Monetarist Theory

Monetarist Theory

Judge that a well-controlled, moderately increasing money supply leads to price stability

Monetarists

U.S. exports should increase when foreigners have greater ________________ ___________________.

Purchasing Power

Periods of deflation tend to occur during ____________________

Recessions

When the dollar is ________________, foreign currency buys fewer U.S. goods

Strong

When the dollar is _________________, it is more affordable for U.S. consumers to buy more foreign goods, so U.S. imports increase

Strong

When the dollar is __________________, U.S. imports increase

Strong

U.S. exports should increase when foreign currency is _________________ than the dollar

Stronger

U.S. exports should increase when their currency is _________________ than the dollar

Stronger

As more goods flow out of the U.S., more money flows in which results in a ____________________

Surplus

The flow of money between the United States and other countries is known as A) the balance of payments. B) the balance of trade. C) the surplus. D) the payment reserves.

The Balance of Payments

The flow of money between the United States and other countries is known as A) the balance of payments. B) the payment reserves. C) the surplus. D) the balance of trade.

The Balance of Payments

A weak U.S. dollar leads to more A) U.S. exports and a balance of payments deficit. B) U.S. imports and a balance of payments deficit. C) U.S. imports and a balance of payments surplus. D) U.S. exports and a balance of payments surplus.

U.S. Exports and a Balance of Payments Surplus

A strong U.S. dollar leads to more A) U.S. imports and a balance of payments surplus. B) U.S. exports and a balance of payments surplus. C) U.S. imports and a balance of payments deficit. D) U.S. exports and a balance of payments deficit.

U.S. Imports and a balance of payments deficit

A weak U.S. dollar leads to more A) U.S. imports and a balance of payments surplus. B) U.S. imports and a balance of payments deficit. C) U.S. exports and a balance of payments surplus. D) U.S. exports and a balance of payments deficit.

U.S. exports and a balance of payments surplus

A strong U.S. dollar leads to more A) U.S. exports and a balance of payments surplus. B) U.S. exports and a balance of payments deficit. C) U.S. imports and a balance of payments deficit. D) U.S. imports and a balance of payments surplus.

U.S. imports and a balance of payments deficit

When the U.S. dollar is ______________ against foreign currencies, U.S. imports will decrease

Weak

When the U.S. dollar is _______________ against foreign currencies, U.S. exports will increase

Weak

When the U.S. dollar is ________________ against foreign currencies, U.S goods are more affordable for foreign buyers; therefore, U.S. exports will increase

Weak

When the dollar is ______________ relative to other currencies, it makes U.S. goods more affordable for foreign consumers to buy, so U.S. exports increase

Weak

Which of the following is a true statement with regard to either U.S. securities laws or the description of international economic factors? A) When a company files for bankruptcy, claims of preferred shareholders are settled before all others. B) A tombstone advertisement may be used in lieu of a prospectus in the distribution and sale of corporate securities. C) When the U.S. dollar is strong, foreign currency buys fewer U.S. goods. D) The Securities Act of 1933 regulates secondary markets and trading on exchanges.

When the U.S. dollar is strong, foreign currency buys fewer U.S. goods