khan academy econ idk
The graph of the foreign exchange market for the Nickelstan Nickel (NN) shown here is missing a label on the vertical axis. Q_{NN}QNNS_{NN}SNND_{NN}DNNER_1ER1 If the United States is a trading partner with Nickelstan, which of the following is the correct choice of a label for the vertical axis in this market?
$ per N N
The exchange rates for 3 currencies are given in the table below. Currency being exchangedCost of currency being exchanged in Thai baht (THB)Cost of currency being exchanged in Danish krone (DKK)Cost of currency being exchanged in Ghana cedi (GHS)Thai baht (THB)10.20.125Danish krone (DKK)510.625Ghana cedi (GHS)81.61 Which of the following is an exchange rate for the baht?
0.125 cedi per baht
Leah is a Canadian citizen who wants to go to the World Cup, which is being held in Russia. If Leah wants to enjoy some delicious blini while watching the game, she will need to trade in her Canadian dollars for Russian rubles. Which of the following is the correct way to express the exchange rate of a Canadian dollar?
40 Rubles per 1 CAD$
The exchange rates for 3 currencies are given in the table below. Currency being exchangedCost of currency being exchanged in Thai baht (THB)Cost of currency being exchanged in Danish krone (DKK)Cost of currency being exchanged in Ghana cedi (GHS)Thai baht (THB)10.20.125Danish krone (DKK)510.625Ghana cedi (GHS)81.61 Which of the following is a correct exchange rate for the krone?
5 baht per krone
The exchange rates for 3 currencies are given in the table below. Note that the one of the exchange rates for the cedi is missing. Currency being exchangedCost of currency being exchanged in Thai baht (THB)Cost of currency being exchanged in Danish krone (DKK)Cost of currency being exchanged in Ghana cedi (GHS)Thai baht (THB)10.20.125Danish krone (DKK)510.625Ghana cedi (GHS)__1.61 If exchange rates are freely floating, what is the missing exchange rate for the cedi?
8 baht per cedi
Mr. Frank is a citizen of Gatorland. He wants a better return on his savings than he gets in Gatorland, so he buys newly issued government bonds from the nation of Hamsterville. How is this purchase counted in the balance of payments in each country?
A debit in Gatorland's financial account; a credit in Hamsterville's financial account.
Which of the following best describes the balance of payments accounts?
A record of all international transactions
Which of the following statements is true about the balance of payments account?
A surplus in the financial account means there is a deficit in the current account
Which of the following is most likely to cause a currency to depreciate while discouraging capital formation?
An increase in the demand for loanable funds.
Which of the following represents the balance of payments?
CA=−FA
Hamsterville is a tourist destination for Canadian citizens. The currency of Hamsterville is the Hamsterville snark (SNSNS, N), and the currency of Canada is the Canadian dollar (CAD\$CAD$C, A, D, dollar sign). If tourism to Hamsterville increases, what will happen in the foreign exchange market for the SNSNS, N and the exchange rate for the SNSNS, N (in terms of the Canadian dollar)?
Demand for the SN increases; SN appreciates
Which term describes the situation in the foreign exchange market for the euro where the quantity demanded of the euro is equal to the quantity supplied of the euro?
Equilibrium
What change will occur in the balance of payments accounts in Wakanda when it sells bonds to Hamsterville?
Financial capital inflows increase
Which of the following is NOT a reason why citizens of the United States would want to buy the euro?
For tourism travel to the United States from Europe
The currency of Hamsterville is the Hamsterville Snark (SNSNS, N). If citizens of Hamsterville want to buy U.S. goods, what happens in the market for the Snark and in the market for the U.S. dollar?
Hamsterville supplies snarks in the market for snarks; Hamsterville demands dollars in the market for dollars
Bill is traveling to Russia from New Zealand for the World Cup to root for New Zealand in their match against Fiji. The currency of New Zealand is the dollar, and the currency of Russia is the ruble. If Bill hears that the New Zealand dollar has depreciated against the Russian ruble, which of the following best describes the impact the depreciation has on his trip?
His purchasing power has decreased.
Which of the following best describes what an exchange rate is in the foreign exchange market?
How much of one currency it takes to buy another currency
The currency of Ghana is the cedi and the currency of India is the rupee. India and Ghana are trading partners. Which of the following would cause the demand for the cedi to increase?
Indian demand for Ghanian products increases.
Which of the following statements about the financial account is true?
It can be balanced, show a surplus, or show a deficit
Which of the following statements about the current account is accurate?
It is not always balanced.
Which of the following best describes depreciation of a currency?
It takes less of another currency to purchase that currency
Which of the following best describes an appreciated currency?
It takes more of another currency to buy that currency
Which of the following best describes appreciation of a currency?
It takes more of another currency to purchase that currency
The international quidditch tournament is being held in Ghana. The currency of Ghana is the cedi. If the cedi has depreciated. What does that mean for tourists heading to Ghana to watch the tournament?
It will take less of their currency to buy the cedi
Suppose the Russian ruble appreciated between May and June 2018. What would this have meant for tourists heading to Russia to watch the World Cup in June 2018?
It would have taken more of their currency to buy the ruble
Which of the following would increase the demand in the foreign exchange market for the U.S. dollar?
Japanese residents want to buy more goods exported from the U.S.
Hamsterville's currency is the snark and it has no restriction on the movement of financial assets in or out of the country. All of the following increase the demand for the snark EXCEPT
Other countries buy less of Hamsterville's exports
Assuming there is no change in the nominal exchange rate, what will be the effect of contractionary monetary policy in Canada on the Canadian price level and the real exchange rate (RER) of the Canadian dollar?
Price level will decrease; RER will decrease.
What effect does this have in Marthaland on real interest rates and the value of Marthaland's currency in the short run and economic growth in the long run?
Real interest rates decrease, Marthaland's currency depreciates, and economic growth increases.
The foreign exchange market for the Maxistan peso is shown in this graph. \$ \text{/peso}$/pesoQ_\text{pesos}QpesosS_\text{pesos1}Spesos1D_\text{pesos}DpesosS_\text{pesos 2}Spesos 2ER_1ER1ER_2ER2 A graph of the foreign exchange market for the peso showing an increase in the supply of the peso and a decrease in the exchange rate of the peso. Which of the following would be most likely to have caused the change shown in the foreign exchange market?
Residents of Maxistan want to buy more foreign assets.
An increase in business optimism in Maxistan has changed the real interest rate in Maxistan which has resulted in a change in the flow of financial assets between Maxistan and its trading partners and impacted the value of Maxistan's currency. Which of the following describes an appropriate action that the central bank of Maxistan could take to offset the change in the value of Maxistan's currency?
Sell its currency or buy another country's currency.
Which of the following describes who benefits from a depreciation of the Japanese yen in international currency markets?
South African residents visiting Japan
The euro is the currency of the European Union (E.U.). If the (E.U.) imposes a quota limiting imports from the United States, what will happen to the market for Euros and the exchange rate for the Euro?
Supply of the euro decreases; the euro appreciates
The citizens of Burginland are convinced that there will never be an improvement in the economic situation there and that there are likely to be widespread defaults on bonds and bank failures. As a result, they want to buy more financial assets from their trading partner, Marthaland. The currency in Burginland is the eagle and the currency in Marthaland is the jean. What is the effect of the increased demand for Marthaland's financial assets on the real value of each country's currency?
The Burginland eagle depreciates and the Marthland jean appreciates.
The exchange rate of the Schrute buck (SBSBS, B) to the Stanley nickel (SNSNS, N) between 2016 and 2017 is given in the table below. YearSBSBS, B needed to buy 1SN1SN1, S, NSN needed to buy 1SB1SB1, S, B201650.2201740.25 What can we definitely say happened between 2016 and 2017?
The SB appreciated
In 2017 the exchange rate for the Nickelstan Nickel (NNNNN, N) was 20 Schrute Buck (SBSBS, B) per NNNNN, N. In 2018 the exchange rate for the Nickelstan Nickel (NNNNN, N) was 30 Schrute Buck (SBSBS, B) per NNNNN, N. Based on this information, which of the following statements must be true?
The SBSBS, B depreciated
Which of the following happens if the U.S. imposes tariffs on Chinese goods?
The U.S. dollar appreciates.
Maxistan and Theopolis are trading partners. The currency of Maxistan is the peso and the currency of Theopolis is the card. What happens to the value of each currency if Maxistan places a tariff on exports from Theopolis?
The card depreciates and the peso appreciates.
The government of Atlantis engaged in expansionary fiscal policy that resulted in an increase in the price level. What will be the impact of the increase in the price level in Atlantis on the foreign exchange market for the Atlantian dollar and the exchange rate for the Atlantian dollar?
The demand for the Atlantian dollar decreases; the Atlantian dollar depreciates
Which of the following best describes the impact if Japan places a tarriff on Canadian exports?
The demand for the Canadian dollar decreases and the supply of the Japanese yen decreases.
The government of Johnsrudia engaged in contractionary fiscal policy that resulted in a decrease in the price level. What will be the impact of the decrease in the relative price level in Johnsrudia on the foreign exchange market for the Johnrsrudian dollar and the exchange rate for the Johnrsrudian dollar?
The demand for the Johnrsrudian dollar increases; the Johnrsrudian dollar appreciates
France and the United States are trading partners. France's currency is the euro and the United States' currency is the dollar. Which of the following would definitely lead to an appreciation of the dollar?
The demand for the dollar increases
The real interest rate in Hamsterville is higher than the real interest rate in Gatorland. Frank is a resident of Gatorland and wants to take advantage of the higher return in Hamsterville by buying financial assets from Hamsterville. The currency of Hamsterville is the snark, and the currency of Gatorland is the percy. What effect will the increase in demand for Hamsterville's financial assets have on the market for the percy and the market for the snark?
The demand for the snark increases and the supply of the percy increases.
The currency of Thailand is the baht. Which of the following would be an example of an appreciation of the baht?
The exchange rate changes from 2 rupees per baht to 3 rupees per baht
Which of the following would NOT be included in the current account of Wakanda?
The nation of Maxistan buys a bond from Wakanda
Assets in Canada are more attractive to Mexican savers and as a result, the supply of the Mexican peso has increased. Which of the following happen to the value of the Mexican peso and the Canadian dollar?
The peso depreciates and the dollar appreciates.
In the foreign exchange market for the Mexican peso, which of the following would best describe the exchange rate for the peso?
The price of a peso in terms of some other currency
Which of the following describes an equilibrium in the foreign exchange market?
The quantity of a currency demanded is equal to the quantity of a currency supplied
The currency of Ghana is the cedi and the currency of Aruba is the florin. Which of the following best defines the exchange rate for the Aruban florin?
The quantity of cedi per florin
How would Japan react to a depreciation of its own currency (the yen)?
The quantity of yen supplied would decrease
Japan and India are trading partners. Japan's currency is the yen and India's currency is the rupee. Which of the following happens when the supply of the rupee increases?
The rupee depreciates and the yen appreciates.
The currency of Hamsterville is the snark, and the currency of Gatorland is the percy. At the current exchange rate, the quantity of Hamsterville snark demanded exceeds the quantity of Gatorland percies supplied. What will happen to the exchange rate of the snark and the exchange rate of the percy?
The snark will appreciate; the percy will depreciate.
Sheila lives in the United States and wants to buy Brian some chocolates imported from Belgium. The currency of the United States is the dollar; Belgium's currency is the euro. How will the importation of chocolate from Belgium impact the market for the dollar and the market for the euro?
The supply of the dollar and the demand for the euro will increase.
Guatemala and the United States are trading partners. Guatemala's currency is the quetzl and the United States' currency is the dollar. Which of the following causes the quetzl to appreciate?
The supply of the dollar increases.
The currency of Hamiltonia is the shot, and the currency of the United States is the dollar. If citizens of Hamiltonia want to take advantage of relatively higher interest rates in the United States, which of the following will happen?
The supply of the shot in the foreign exchange market for the shot will increase.
At the current exchange rate of the Korean won to the South African rand, South Africa is willing to supply 10 rand and Korea wants to buy 20 rand. Both countries have flexible exchange rates Which of the following would we expect to happen?
The won will depreciate
Expansionary monetary policy in Maxistan has increased the rate of inflation in Maxistan to 12\%12%12, percent. The current rate of inflation in Ile is 1\%1%1, percent. Which of the following graphs correctly shows the impact of the decrease in relative prices on the exchange rate for the Maxistan peso?
Two red lines (pretty short) D peso 1 pointing at D peso 2
One of Ghana's top trading partners is India. The currency in Ghana is the cedi and the currency in India is the rupee. Which of the following is a likely consequence of an increase in business optimism in Ghana?
a depreciation of the rupee against the cedi
Ghana's currency is the cedi, and assume Ghana has no currency controls. A change in the economy has led to the shift from point X to point Y. India is one of Ghana's top trading partners, and India's currency is the rupee. UR \%UR%XXYY9\%9%11\%11%SRPCSRPCLRPCLRPC What's the impact of this economic change on the values of the cedi and rupee?
cedi depreciates; rupee appreciates
The currency of Japan is the yen, and the currency of the United States is the U.S. dollar. Which of the following graphs depicts the impact on the exchange rate for the U.S. dollar if the United States imposes a tariff on goods from Japan?
two green lines S$1 points at S$2 (E2 upbove E1)
As a result of an economic boom in Hamsterville, foreign investors want to buy more financial assets from Hamsterville. Which of the following graphs correctly illustrates the impact this will have on the foreign exchange market for the Hamsterville Snark (SN)?
two red line going down and the red arrow pointing from D1 to D2
The currency of Japan is the yen, and the currency of the United States is the U.S. dollar. Which of the following graphs depicts the impact on the exchange rate for the yen if the United States imposes a tariff on goods from Japan?
two red lines (pretty long) D yen 1 pointing at D yen 2
Contractionary fiscal policy in Maxistan has lowered the rate of inflation in Maxistan to 2\%2%2, percent. The current rate of inflation in Ile is 10\%10%10, percent. Which of the following graphs correctly shows the impact of the decrease in relative prices on the exchange rate for the Maxistan peso?
two red lines D peso 1 points at D peso 2
