ECON101 exam 10 topic 15 actual, attempt 1.docx - ECON101_MH_V3Topic 15 Exchange Rates International Trade and Capital Flows Started on State Friday

ECON101 exam 10 topic 15 actual, attempt 1.docx -...

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ECON101_MH_V3Topic 15: Exchange Rates, International Trade and Capital Flows Started on Friday, January 24, 2020, 9:31 AM State Finished Completed on Friday, January 24, 2020, 9:49 AM Time taken 17 mins 57 secs Grade 55.00 out of 55.00 (100%) Question 1 Correct 2.75 points out of 2.75 Not flaggedFlag question Question text The following table provides nominal exchange rates for the U.S. dollar. Picture Based on these data, the nominal exchange rate equals approximately ______ pesos per Canadian dollar or, equivalently, ______ Canadian dollars per peso. Select one: a. 0.672; 1.488 b. 9.259; 0.108 c. 6.222; 0.161 Correct d. 7.771; 0.129 Feedback The correct answer is: 6.222; 0.161 Question 2
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Correct 2.75 points out of 2.75 Not flaggedFlag question Question text If one euro nation is experiencing rapid growth and inflation while another is facing sluggish growth and recession: Select one: a. the European Central Bank ought to employ a tight monetary policy. b. the European Central Bank ought to employ an easy monetary policy. c. the two countries will disagree about the approach to monetary policy. Correct d. only an appreciation of the euro can help both countries simultaneously. Feedback The correct answer is: the two countries will disagree about the approach to monetary policy. Question 3 Correct 2.75 points out of 2.75 Not flaggedFlag question Question text A decrease in the value of a currency relative to other currencies is called a(n): Select one: a. revaluation. b. devaluation.
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c. appreciation. d. depreciation. Correct Feedback The correct answer is: depreciation. Question 4 Correct 2.75 points out of 2.75 Not flaggedFlag question Question text U.S. households wishing to purchase shares of stock in a European company are ______ the foreign exchange market. Select one: a. suppliers of U.S. dollars in Correct b. suppliers of Euros in c. supplied Euros by the Fed for use in d. demanders of U.S. dollars in Feedback The correct answer is: suppliers of U.S. dollars in Question 5 Correct 2.75 points out of 2.75 Not flaggedFlag question Question text If a certain automotive part can be purchased in Mexico for 60 pesos or in the United States for $6.25 and if the nominal exchange rate is 8 pesos per U.S. dollar, then the automotive part:
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Select one: a. is less expensive in Mexico.
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