Exam 3 Review-Econ 2301, Spring2011

Exam 3 Review-Econ 2301, Spring2011 - Exam 3 Review Econ...

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Exam 3 Review Econ 2301-Spring, 2011 1 .U.S. exports create a: A. Supply of foreign currencies to the United States and a demand for dollars in foreign countries B. Demand for foreign currencies in the United States and a supply of dollars to foreign countries C. Supply of foreign currencies to the United States and a supply of dollars to foreign countries D. Demand for foreign currencies in the United States and a demand for dollars in foreign countries 2. U.S. imports create a: A. Supply of foreign currencies to the United States and a demand for dollars in foreign countries B. Demand for foreign currencies in the United States and a supply of dollars to foreign countries C. Supply of foreign currencies to the United States and a supply of dollars to foreign countries D. Demand for foreign currencies in the United States and a demand for dollars in foreign countries 3. U.S. businesses are demanders of foreign currencies because they need them to: A. Produce goods and services exported to foreign countries B. Pay for goods and services imported from foreign countries C. Receive interest payments from foreign governments D. Receive interest payments from foreign businesses 4. Foreign businesses are demanders of U.S. currency because they need them to: A. Produce goods and services exported to the United States B. Pay for goods and services imported from the United States C. Receive interest payments from the U.S. government D. Receive interest payments from U.S. businesses 5. International asset transactions A. involve the transfer of the property rights to either real or financial assets between the citizens of one country and the citizens of another country B. involve either purchasing or selling currently produced goods or services across an international border C. have no effect on the demand for on foreign exchange markets D. have no effect on supply of currency on foreign exchange markets 6. When a U.S. importer buys 100,000 pairs of pants from a Hong Kong company, this transaction will be a: A. Credit on the current account of the U.S. balance of payments B. Debit on the current account of the U.S. balance of payments C. Credit on the financial account of the U.S. balance of payments D. Debit on the financial account of the U.S. balance of payments 7. When a U.S. agribusiness sells 10,000 units of cow vaccine to a company in France, this transaction will be a: A. Credit on the current account of the U.S. balance of payments B. Debit on the current account of the U.S. balance of payments C. Credit on the financial account of the U.S. balance of payments D. Debit on the financial account of the U.S. balance of payments 8. When a U.S. company purchases a factory in Singapore, this will be a: A. Credit on the current account of the U.S. balance of payments B. Debit on the current account of the U.S. balance of payments C. Credit on the financial account of the U.S. balance of payments D. Debit on the financial account of the U.S. balance of payments
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9. Refer to the above graph. If more people in Europe decide to purchase U.S. cars, what effect will this have
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Exam 3 Review-Econ 2301, Spring2011 - Exam 3 Review Econ...

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