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HSC Economics - Exchange Rate Recaps - 5 Star Quiz Flashcards | StudBud
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HSC Economics - Exchange Rate Recaps - 5 Star Quiz
HSC Economics - Exchange Rate Recaps - 5 Star Quiz
15 terms
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A #HSC #economics quiz on #exchange #rates.
Flashcards
15 cards
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Practice quiz
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Questions
15
Answers
1
What happens if there is an increase in the Demand for AUD?
A revaluation
A depreciation
An appreciation
A devaluation
2
What is likely to increase the purchasing power of Australian consumers?
A depreciation of the dollar
An increase in Australian interest rates
An increase in export competitiveness
An appreciation of the dollar
3
What is the most likely impact of a currency depreciation?
Increased exports, increased CAD
Depreciation - more financial inflows
Increased exports, decreased CAD
Increased imports, increased CAD
4
HARD - An increase in the supply of AUD is likely due to which factor?
Lower international competitiveness of Australian firms.
Increased international competitiveness of Australian firms.
A decrease in the level of foreign debt
A decrease in Net Primary Income Deficit.
5
What is an impact of a volatile exchange rate on the Australian economy?
Higher export volumes
Higher investor confidence
A deterioration of the TOT
Lower foreign direct investment inflows
6
What does this graph show?
Depreciation of USD against JPY
Appreciation of JPY against USD
Depreciation of JPY against USD
Appreciation of USD against JPY
7
In order, which are the top three countries in Australia's Trade Weighted Index?
China, South Korea, US
US, Japan, China
China, Japan, US
China, US, Japan
8
What is the most likely impact of a sustained appreciation of the AUD?
Increased international competitiveness
A deterioration of the CAD
Reduction if foreign debt in AUD terms
Decreased demand for imports
9
Can the AUD appreciation against the USD but depreciate against the TWI at the same time?
No
Yes
Yes
No
10
How could a country lower its exchange rate by 10 cents?
Sell AUD and buy FOREX
Buy AUD and buy FOREX
Buy AUD and sell FOREX
Sell AUD and sell FOREX
11
Which of the following will occur if the RBA increases interest rates?
Depreciation - More financial inflows
Appreciation - Less financial inflows
Appreciation - More financial inflows
Depreciation - Less financial inflows
12
Which of the following is likely to lead to a depreciation in Australia's currency?
Higher Australian interest rates.
A global shortage of manufactured goods.
A sustained rise in the price of iron ore.
A global rise in the price of manufactured goods.
13
What determines the value of the AUD?
Trade Weighted Index
The AUD floating above inflation
The AUD is determined by Demand & Supply in the FOREX market
The RBA fixing the dollar in the FX market every day
14
What would most likely lead to a depreciation?
The TWI increases
The RBA buys FOREX
Increased domestic demand for apples
The RBA sells FOREX
15
Australia decides to donate $1,000,000,000 to Greenland to help it fight a war against Denmark.
This leads to a fall in the TWI
This leads to an appreciation of the AUD
This leads to a depreciation of the AUD
This leads to an increase in the TWI
