ECON 340 - CHAPTER 12 EXAM QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026
If in January 2007, $1 = 110 yen, and in July 2007, $1 = 90 yen, then a Harley Davidson motorcycle that
cost $8,000 in January would now cost _______ in Japan in July. - Answers 720,000 yen
Assume that in 2006, the dollar-euro exchange rate was 1 euro per dollar and in 2007 it was 0.75
euros per dollar. If you have $100 million in assets in Germany in 2006, then in 2007 your assets in
Germany are: - Answers worth $133.33 million.
Which of the following situations would NOT be compatible with the others?
A. A rise in national wealth
B. expenditure being greater than income (production) in a nation
C. new borrowing from the rest of the world
D. a deficit in the current account - Answers A. A rise in national wealth
It is _________ to assume that all goods are priced in a common currency in international markets. -
Answers unrealistic
What is an exchange rate? - Answers It is price of one nation's currency measured in units of another
nation's currency.
Changes in a nation's exchange rates have an impact on: - Answers relative prices of home and
foreign goods.
When the exchange value of the euro rises in terms of the U.S. dollar, U.S. residents find that
European imports are: - Answers more expensive
European residents who hold U.S. dollar assets experience a _______ in their value when the dollar
exchanges for fewer units of foreign currency. - Answers decline
International macroeconomics studies: - Answers the interrelationship of large-scale economic issues
across countries.
Argentina's currency crisis, which began in 2002, is blamed for: - Answers extreme poverty, high
unemployment, and social unrest.
When the exchange rate is said to be fixed, it: - Answers does not vary at all
Compared with the US dollar-euro, the US dollar-yuan exchange rate has exhibited: - Answers much
less fluctuation.
In the 12-year period from 1997 to 2009, there were ________ instances of exchange rate crises
worldwide. - Answers 24
The fallout from an international currency crisis episode: - Answers has major and lasting effects on
trading partners, financial, relationships and political institutions.
If a nation is a net creditor internationally, it means that: - Answers residents of the nations have
more foreign assets than foreign liabilities.
A country's external wealth is equal to: - Answers its foreign assets minus its foreign liabilities.
When an individual's income is smaller than his or her expenditures, the individual CANNOT: -
Answers print his or her own money.
A nation's current account is: - Answers A record of nation's income, expenditure, deficit, and surplus
during a particular period.
In 2009, the area with the largest trade deficit was: - Answers the United States.
Compared with 100 years ago, the number of currencies exchanged today is: - Answers many times
more.
If in January 2007, $1 = 110 yen, and in July 2007, $1 = 90 yen, then a Harley Davidson motorcycle that
cost $8,000 in January would now cost _______ in Japan in July. - Answers 720,000 yen
Assume that in 2006, the dollar-euro exchange rate was 1 euro per dollar and in 2007 it was 0.75
euros per dollar. If you have $100 million in assets in Germany in 2006, then in 2007 your assets in
Germany are: - Answers worth $133.33 million.
Which of the following situations would NOT be compatible with the others?
A. A rise in national wealth
B. expenditure being greater than income (production) in a nation
C. new borrowing from the rest of the world
D. a deficit in the current account - Answers A. A rise in national wealth
It is _________ to assume that all goods are priced in a common currency in international markets. -
Answers unrealistic
What is an exchange rate? - Answers It is price of one nation's currency measured in units of another
nation's currency.
Changes in a nation's exchange rates have an impact on: - Answers relative prices of home and
foreign goods.
When the exchange value of the euro rises in terms of the U.S. dollar, U.S. residents find that
European imports are: - Answers more expensive
European residents who hold U.S. dollar assets experience a _______ in their value when the dollar
exchanges for fewer units of foreign currency. - Answers decline
International macroeconomics studies: - Answers the interrelationship of large-scale economic issues
across countries.
Argentina's currency crisis, which began in 2002, is blamed for: - Answers extreme poverty, high
unemployment, and social unrest.
When the exchange rate is said to be fixed, it: - Answers does not vary at all
Compared with the US dollar-euro, the US dollar-yuan exchange rate has exhibited: - Answers much
less fluctuation.
In the 12-year period from 1997 to 2009, there were ________ instances of exchange rate crises
worldwide. - Answers 24
The fallout from an international currency crisis episode: - Answers has major and lasting effects on
trading partners, financial, relationships and political institutions.
If a nation is a net creditor internationally, it means that: - Answers residents of the nations have
more foreign assets than foreign liabilities.
A country's external wealth is equal to: - Answers its foreign assets minus its foreign liabilities.
When an individual's income is smaller than his or her expenditures, the individual CANNOT: -
Answers print his or her own money.
A nation's current account is: - Answers A record of nation's income, expenditure, deficit, and surplus
during a particular period.
In 2009, the area with the largest trade deficit was: - Answers the United States.
Compared with 100 years ago, the number of currencies exchanged today is: - Answers many times
more.
