Every ________ can be considered to have a corresponding flow of foreign money associated with it, and this flow of foreign money is recorded as a ________. A) credit transaction B) current account transaction C) debit transaction D) capital account transaction ANSWER Answer: B
Date: September 19th, 2020
Assume $1 buys .685 pounds and that $1 buys 78.342 yen. Calculate the cross rate. A) 114.38¥/£ B) .01¥/£ C) 53.66¥/£ D) 98.25¥/£ ANSWER A
Date: September 19th, 2020
The purchases of goods and assets by domestic residents from foreign residents are ________ because they cause an outflow of foreign exchange. ________ increase the demand for the foreign money in the foreign exchange market. A) credit transactions B) current account transactions C) debit transactions D) capital account transactions ANSWER Answer: C
Date: September 19th, 2020
Into what subcategory in the current account do you find the export and import of education, insurance, consulting, telecommunications, royalties on films, etc? A) unilateral current transfers, net B) balance on goods and services C) balance on current account D) services ANSWER Answer: D
Date: September 19th, 2020
In a freely floating exchange rate system, if the capital account surplus for the U.S. rises, what will most likely happen to the real value of the dollar? A) It will decline. B) It will rise. C) There is no impact on the dollar. D) The IMF will step in to adjust rising exchange rates. […]
Date: September 19th, 2020
All of the following are the reasons why Gross National Income does not equal Gross Domestic Product in an open economy EXCEPT: A) the capital and labor used to produce the goods in the domestic country do not need to be owned by domestic residents. B) the country may receive transfer payments from abroad or […]
Date: September 19th, 2020
The sale of American computers to the Spanish government shows up as A) a debit on the official reserves account. B) a credit on the official reserves account. C) a credit on the trade account. D) a debit on the current account. ANSWER Answer: C
Date: September 19th, 2020
In a freely floating exchange rate system, if the capital account is running a deficit A) the balance of payments must run a deficit. B) the balance of payments must be zero. C) the current account must run a surplus. D) both B and C. ANSWER Answer: D
Date: September 19th, 2020
Balance sheets A) show how the firm raised funds to purchase assets. B) report a firm’s activities over a period of time. C) describe a firm’s cash flows. D) provide information about a firm’s labor costs. E) may not balance if the firm suffered a net loss. ANSWER A
Date: September 19th, 2020
If you have the exchange rates for converting U.S. dollars to yen and U.S. dollars to the euro, you could convert from yen to euros by using a: A) Spot rate B) Indirect rate C) Counter rate D) Cross rate ANSWER D
Date: September 19th, 2020
