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Exchange Rates (the sequel) Flashcards | StudBud
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Exchange Rates (the sequel)
Exchange Rates (the sequel)
20 terms
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StudBud Administration
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The economics of exchange rates
Flashcards
20 cards
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Practice quiz
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Questions
20
Answers
1
What is the difference between a fixed and a floating exchange rate
Both are controlled by governments
One is influenced by the forces of supply and demand
2
Exchange rates are prices
True
False
3
What causes exchange rates to fluctuate
demand remains constant
Supply remains constant
A change in demand
no change in supply
4
Is Montenegro in the single currency
No
Yes
5
What can be a causes for an increase in the demand for £
World demand for $
Tropical storms
Exchange rates
none of the above
6
What has happened to the value of the £ against the Euro over the last few days
It has generally increased
It has gone down from 1.16euros to 1.13euros
It has generally decreased
The value of the £ to Euro has not changed
7
What is the currency of Croatia
Kroona
Krona
Krown
Kuna
8
Which country previously had this currency (see picture)
Albania
Serbia
Greece
Montenegro
9
A fall in the demand for £ would see a shift to.....
Left
Down
Up
Right
10
When is it beneficial to have a weak currency
When imports equal exports
When imports exceed exports
when exports are less than imports
when exports exceed imports
11
Is Hungary in the single currency
Yes
Not Sure
No
Maybe
12
if the value of the £ to the Euro increased this is called
Depreciation
Appreciation
13
What would happen to the exchange rate price for £ if exports increased
It would go down as supply would fall
It would stay the same
It would go up as demand would increase
The $ would get stronger
14
What is meant by the term "currency war"
The Euro is better than the £
A country illegally makes another currency
Countries manipulate their currencies to devalue it
Countries allow their currencies to float freely
15
Demand for one money is the supply of another
False
True
16
What is one benefit of having a single currency in Europe
Countries print their own money
It increases transaction costs
There is no loss of sovereignty
It decreases transaction costs
17
In the UK we have a trade deficit, what does this mean
Exports are lower than imports
imports and exports are the same
Exports are higher than imports
Imports are lower than exports
18
An increase in the supply of £ would cause a shift to....
Right
Up
Down
left
19
What is one drawback of a single currency like the Euro
There is some loss of sovereignty
There is periodic loss of sovereignty
There is a loss of sovereignty
There is no loss of sovereignty
20
Which country has this note (see picture) as their currency
Albania
Montenegro
Serbia
Croatia
