Quiz%2011

Quiz%2011 - ECON 210 - QUIZ 11 NAME: _ 1. According to the...

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ECON 210 - QUIZ 11 NAME: ______________________________________ 1. According to the text, what is depreciation? a. A fall in the price of a currency b. A rise in the price of a currency c. A tactic employed to increase imports d. A tactic employed to increase exports 2. Bill trades 84 Euros to acquire 12 Dollars at the going market rate. It follows that the exchange rate (in terms of how much Euros 1 dollar can buy) is: a. 6 b. 7 c. 8 d. 1/6 3. Assume that we are concerned with movements in U.S exchange rates. Which of the following statement(s) is/are true? a. A fall in nominal exchange rates will reduce the quantity of dollars supplied in the foreign exchange market b. A fall in nominal exchange rates will increase quantity of dollars demanded in the foreign exchange market c. A fall in nominal exchange rates will increase quantity of dollars demanded in the foreign exchange market d. A and C 4. Holding other factors constant, an appreciation of the U.S dollar relative to the Japanese
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Quiz%2011 - ECON 210 - QUIZ 11 NAME: _ 1. According to the...

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