Question ECON125-HK2. ECONOMICS FOR MANAGERS (ECON125-HK2) > TAKE ASSESSMENT:

04 Jun Question ECON125-HK2. ECONOMICS FOR MANAGERS (ECON125-HK2) > TAKE ASSESSMENT:

Question
ECON125-HK2. ECONOMICS FOR MANAGERS (ECON125-HK2) > TAKE ASSESSMENT: EXAM 5

Question 1 2 points Save

Overseas investments by U.S. citizens are recorded as credit items in the capital account of the U.S. balance of payments.

True

False

Question 2 2 points Save

Under a fixed or controlled exchange rate system, if the United States wanted to increase the value of the dollar, it could buy foreign currencies with dollars.

True

False

Question 3 2 points Save

Since World War II, international exchange rates have been

fixed all the time

floating all the time

fixed most of the time until the early 1970s, and floating most of the time since then

determined by the use of exchange controls

Question 4 2 points Save

Under a system of fixed exchange rates, excess demand for foreign currency at the official exchange rate would cause

the exchange rate to rise

the exchange rate to fall

the government to buy foreign currency from the country’s importers

the government to sell foreign currency to the country’s importers

Question 5 2 points Save

The course of international monetary policy is directed primarily by the

Federal Reserve

World Bank

International Monetary Fund

leaders of the Group of Seven nations

Question 6 2 points Save

Overseas investments by U.S. citizens show up in the U.S. balance of payments as

credit items

debit items

current account items

investment income

Question 7 2 points Save

A debit item on the U.S. balance of payments is any transaction that

results in a loss by U.S. sellers

results in a loss by U.S. buyers

makes foreigners use up their holdings of U.S. dollars

makes U.S. dollars available to foreigners

Question 8 2 points Save

Under the gold standard, a country that is experiencing a gold outflow

has a balance of payments deficit

has a shrinking money supply

is experiencing a fall in output

all of the above

Question 9 2 points Save

When a U.S. citizen invests in foreign assets, the transaction is recorded in the balance of payments as a

credit in capital account

debit in the capital account

credit in the current account

debit in the current account

Question 10 2 points Save

Since World War II, the importance of gold in international exchange has increased.

True

False

Question 11 2 points Save

A freely floating exchange rate exists when

governments set pegs for the exchange rate but occasionally adjust them

offshore banks determine the exchange rate

supply and demand forces are allowed to determine the rate at which currencies are exchanged for each other

governments use international reserves only to influence exchange rates

Question 12 2 points Save

An appreciation of the U.S. dollar would

encourage foreigners to invest in the United States

discourage foreigners from buying U.S. goods

discourage the travel abroad of U. S. citizens

encourage foreign travel in the United States

Question 13 2 points Save

Under the gold standard, a country experiencing a gold outflow

has a balance of payments surplus

had an increasing money supply

experienced a decline in output

experienced an increase in output

Question 14 2 points Save

Under a system of floating exchange rates, increased demand of U.S. citizens for Japanese goods will cause

the Japanese yen to depreciate against the U.S. dollar

the U.S. dollar to appreciate against the Japanese yen

the Japanese yen to appreciate against the U.S. dollar

the exchange rate between the Japanese yen and the U.S. dollar to remain unchanged

Question 15 2 points Save

Under the gold standard, a nation experiencing chronic trade deficits had to increase its money supply while reducing its holdings of gold.

True

False

Question 16 2 points Save

Appreciation of the U.S. dollar encourages travel abroad by U.S. citizens.

True

False

Question 17 2 points Save

If trade between the United States and Canada were totally free of restrictions, the incomes of most Canadian workers would decrease.

True

False

Question 18 2 points Save