Homework 11 55-59 - CoveringLessons5559 Homework11

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Homework 11 Covering Lessons 55 - 59   Utilities  > Submissions  > View submission by Hwang, Kwang-Myoung ([email protected]) on 11/11/2008 12:39:26 PM Points Awarded  0 Points Missed  14 Percentage  0% 1. Suppose that there are two countries (Mexico and the United States) and that we want to use supply  and demand to illustrate the foreign exchange market for dollars.  What is on the vertical axis of the  graph? A. The U.S. interest rate. B. The Mexican interest rate. C. The Mexican interest rate divided by the U.S. itnerest rate. D. The exchange rate measured as pesos per dollar. E. The exchange rate measured as dollars per peso. The price of dollars in the FX market is measured as pesos per dollar. See lesson 55. Points Earned: 0/1 Correct Answer: D Your Response: 2. Suppose that there are two countries (the United States and China).  The demand for dollars on the FX  market is derived from A. U.S. demand for Chinese goods and  services. B. U.S. demand for Chinese assets. C. both of the above. D. Chinese demand for U.S. goods and  services. E. None of the above. Chinese demand dollars for the goods and services (and assets) that those dollars can buy. See lesson 55. Points Earned: 0/1 Correct Answer: D Your Response: 3. Suppose that there are two countries (the United States and China).  The supply of dollars to the FX  market is derived from
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A. U.S. demand for Chinese goods and  services. B. U.S. demand for Chinese assets. C. both of the above. D. Chinese demand for U.S. goods and  services. E. None of the above. Americans bring dollars to the FX market to exchange for Chinese currency, which can then be used to buy  Chinese goods, services, and assets. See lesson 55. Points Earned: 0/1 Correct Answer: C Your Response: 4. U.S. demand for foreign currency corrsponds to A. debit items in the U.S. balance of payments. B. credit items in the U.S. balance of payments. C. the difference between credit and debit items in the U.S. balance of payments. D.
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This note was uploaded on 02/25/2011 for the course ECON 340 taught by Professor Leidholm during the Spring '08 term at Michigan State University.

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Homework 11 55-59 - CoveringLessons5559 Homework11

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