STDQs_Chapt_18_

STDQs_Chapt_18_ - 1. Beginning in 2002, the value of the...

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1. Beginning in 2002, the value of the U.S. dollar a. increased relative to the euro. b. decreased relative to the euro. c. remained stable relative to the euro. d. was equal to the value of the euro. ANS: B DIF: Easy TOP: What Are Exchange Rates? 2. When goods or services cross international borders a. countries must ship gold to make payment. b. money must generally move in the opposite direction. c. a future shipment must be made to offset the current purchase. d. payment must be made in another good, using barter. ANS: B DIF: Easy TOP: What Are Exchange Rates? 3. The exchange rate a. is the ratio of two countries' GDPs. b. is the rate at which one country's money is flowing into another country. c. states the price of one currency in terms of another currency. d. is closely related to the concept of absolute advantage. ANS: C DIF: Easy TOP: What Are Exchange Rates? 4. At any given moment there is one exchange rate a. for currencies in the free world. b. between every pair of currencies. c. for all the world's currencies. d. established by the Federal Reserve Board. ANS: B DIF: Moderate TOP: What Are Exchange Rates? 5. There is an exchange rate between a. every pair of currencies. b. the world's major currencies but not between the currencies of less-developed countries. c. currencies on a fixed-exchange rate system but not for those on a floating-rate system. d. the currencies of the European Union but not for the nations outside the European Union. ANS: A DIF: Easy TOP: What Are Exchange Rates? 6. The exchange rate is a. another term for "interest rate." b. another term for "growth rate." c. the rate at which goods trade for one another across international borders. d. the price of one currency in terms of another currency. ANS: D DIF: Easy TOP: What Are Exchange Rates? 7.
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STDQs_Chapt_18_ - 1. Beginning in 2002, the value of the...

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