When the dollar value of the Yen is high:

Travel in the US is cheaper for Japanese

When a country's currency depreciates:

foreigners find this country's goods to be cheaper

When the US dollar appreciates relative to the Peso, then:

American goods become more expensive in Mexico

The quantity of US dollars demanded in the FOREX market depends in part on:

foreign purchases of US goods and services

studbud

FOREX Review

10 termsStudBud Administration261 plays

FOREX and international trade

Flashcards10 cardsFPractice quizPHost liveL

Questions 10

Answers

1
The value of a Yen goes from 1 Yen = $6 to 1 Yen = $7. The dollar has:
risen in value relative to the Yen
not been affected
depreciated
appreciated
2
If a country sells more goods and services to other countries than they purchase, they have a:
budget surplus
budget deficit
trade deficit
trade surplus
3
When the dollar value of the Yen is high:
the dollar has appreciated
The Yen has depreciated
Travel in the US is more expensive for Japanese
Travel in the US is cheaper for Japanese
4
When a country's currency depreciates:
foreigners find this country's goods to be cheaper
the country's imports will rise
the country's exports will fall
that country's trade balance begins to decline
5
If the US gives foreign aid to Indonesia, which balance of payments account is affected?
Official Reserves Account
FOREX account
financial account
current account
6
When the demand for the peso increases, the Dollar price of the peso _____ and the Dollar _____
rises; depreciates
falls; depreciates
falls; appreciates
rises; appreciates
7
Which of the following would NOT have an impact on the relative price of a country's currency?
A recession in that country
Fiscal policy
Higher prices in that country
An increase in demand for that country's products
8
When the US dollar appreciates relative to the Peso, then:
Mexican goods become more expensive here
The US will tend to buy more from Mexico
American goods become more expensive in Mexico
the US ill import fewer goods from Mexico
9
The quantity of US dollars demanded in the FOREX market depends in part on:
US direct aid to foreign governments
US purchases of foreign goods and services
US investment in foreign companies
foreign purchases of US goods and services
10
When British investors buy stock in Yahoo, which balance of payments account is affected?
official reserves account
financial account
current account
FOREX account

FOREX Review Flashcards | StudBud