Quiz3_key - FINA 5331 Quiz # 3 1. If the exchange rate is...

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FINA 5331 Quiz # 3 1. If the exchange rate is held constant, what happens to the CA when domestic income falls? a. Becomes balanced. b. Moves into deficit. c. The CA will be unaffected d. None of the above. 2. Internal balance in the IS-LM-BP model is characterized by a. Intersection of IS and BP schedules. b. Intersection of IS and LM schedules. c. Intersection of BP and r * schedules. d. All of the above. e. None of the above. 3. Under a floating exchange rate system, a BP deficit should lead to, a. Domestic appreciation. b. Domestic depreciation. c. No effect on the exchange rate. d. Reserve outflow. e. None of the above. 4. Which of the following is not a difference between forward and futures contracts? a. mark-to-market pricing. b. contracts are in fixed $ amounts. c. delivery is made at a future date. d. traded on exchange markets in fixed geographical location. e. all are differences between forward and futures contracts.
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5. If the Rmb is expected to appreciate versus the dollar at an increasing rate, what
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This note was uploaded on 07/16/2011 for the course FINA 5331 taught by Professor Staff during the Spring '08 term at UT Arlington.

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Quiz3_key - FINA 5331 Quiz # 3 1. If the exchange rate is...

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