… Show more The demand for yuan by Americans is also: Ques

… Show more The demand for yuan by Americans is also: Question 2 options: a demand for Chinese securities. a demand for dollars. a supply of yuan. a supply of dollars. Under the Bretton Woods system, exchange rates were: Question 3 options: fixed by agreement and governments had to intervene in foreign exchange markets when the value of their currency went beyond 1% of its declared par value. sometimes fixed and sometimes fully flexible depending upon the price of gold. flexible and determined by the laws of supply and demand. none of the above. The larger the current account surplus, the: Question 4 options: larger the capital account deficit. greater the depreciation of the dollar. larger the total account surplus. larger the balance of merchandise trade deficit. If the current account is in a deficit, the capital account: Question 5 options: will be in a surplus. will be in balance. can either be a deficit or surplus. will be in a deficit. Central banks can keep exchange rates fixed as long as: Question 6 options: the IMF would allow them to do so. the central banks of each country are able to get the approval from the Commercials banks of their respective countries. there is a constant amount of gold in the world. they have enough foreign exchange reserves to deal with potentially long-run changes in the demand or supply of its currency. What is the difference between the balance of trade and the balance of payments? Question 7 options: Both the balance of trade and the balance of payments consider exports and imports, while the balance of payments also includes cross-border exchange of services, income and financial assets. Both the balance of trade and the balance of payments consider exports and imports, while the balance of trade also includes cross-border exchange of services, income and financial assets. Only the balance of trade includes exports and imports. Only the balance of payments includes exports and imports. Some Europeans visit the Australia and travel to several tourist areas. Their spending while in the Australia: Question 8 options: will make the Australian current account deficit larger. has no effect on the Australian balance of payments. will increase Australian exports of services. will increase Australian imports of goods. From the perspective of Australia, the demand for the Israeli shekel by Australian residents is primarily derived from: Question 9 options: exports to Israel. imports from and exports to Israel. imports from Israel. imports and exports for all countries. The exchange rate type in which a country “fixes” its exchange rate to another country’s currency, but allows its par value to change at regular intervals, is referred to as: Question 10 options: a target zone. a fixed exchange rate. a crawling peg. a dirty float. • Show less

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