econ 340 exam 2 with correct answers
100% 2026
International macroeconomics studies: - Correct Answers The interrelationship of large-scale
issues across countries
In Argentina, when the exchange rate was floated in 2002, all of the following took place except
a sharp:
decline in unemployment rates
increase in the level of poverty
increase in inflation
decline in the exchange rate of the peso - Correct Answers decline in unemployment rates
When an exchange rate is said to be fixed it: - Correct Answers does not vary at all.
Compared with the US dollar-yuan, the average fluctuation in the US dollar-euro exchange rate
is how much larger? - Correct Answers 6 or 7 times as large
Exchange rate crises: - Correct Answers are fairly common
External wealth can increase by all of the following, except:
rises in the value of international assets (capital gains)
decreases in the value of liabilities to international entities
borrowing from international entities
lending to international entities - Correct Answers borrowing from international entities
If a nation is a net creditor internationally, it means that: - Correct Answers residents of the
nation have more foreign assets than foreign liabilities
,When a country makes a loan in its own currency and its currency depreciates, it experiences: -
Correct Answers neither a capital gain or a capital loss
Whenever gross national income is less than gross national expenditure for some time, a nation
will experience a - Correct Answers deficit in its current account
Which of the following countries had the largest current account deficit in 2015?
Russia
USA
China
Japan - Correct Answers USA
Compared with 100 years ago, the number of currencies exchanged today is: - Correct Answers
many times more
If $1 = 90 yen, then a Harley Davidson that costs $8,000 would cost ____ in Japan - Correct
Answers 720,000 yen
Which of the following situations would NOT be compatible with the others?
New borrowing from the rest of the world
Expenditure being greater than income (production) in a nation
Rise in national wealth
a deficit in the current account - Correct Answers rise in national wealth
What is an exchange rate - Correct 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: - Correct Answers relative prices of
home and foreign goods
When the exchange value of the euro rises in terms of the USD, US residents find that European
imports are: - Correct Answers more expensive
A credit rating of A means: - Correct Answers easy access to low- interest loans
The great divergence refers to - Correct Answers the gap in income per capita between rich and
poor nations
Countries with good institutions have - Correct Answers higher per capita income
Emerging market countries are: - Correct Answers mainly countries that are growing and
becoming more integrated into the global economy.
A large and sudden currency depreciation is widely known as: - Correct Answers an exchange
rate or currency crisis.
Which European nation has kept its own currency and maintains a fixed value against the euro?
- Correct Answers Denmark
In which of the following categories would the sale of foreign currency with a forward
repurchase agreement be included? - Correct Answers A swap
A spot contract is a: - Correct Answers contract for the immediate exchange of currencies
100% 2026
International macroeconomics studies: - Correct Answers The interrelationship of large-scale
issues across countries
In Argentina, when the exchange rate was floated in 2002, all of the following took place except
a sharp:
decline in unemployment rates
increase in the level of poverty
increase in inflation
decline in the exchange rate of the peso - Correct Answers decline in unemployment rates
When an exchange rate is said to be fixed it: - Correct Answers does not vary at all.
Compared with the US dollar-yuan, the average fluctuation in the US dollar-euro exchange rate
is how much larger? - Correct Answers 6 or 7 times as large
Exchange rate crises: - Correct Answers are fairly common
External wealth can increase by all of the following, except:
rises in the value of international assets (capital gains)
decreases in the value of liabilities to international entities
borrowing from international entities
lending to international entities - Correct Answers borrowing from international entities
If a nation is a net creditor internationally, it means that: - Correct Answers residents of the
nation have more foreign assets than foreign liabilities
,When a country makes a loan in its own currency and its currency depreciates, it experiences: -
Correct Answers neither a capital gain or a capital loss
Whenever gross national income is less than gross national expenditure for some time, a nation
will experience a - Correct Answers deficit in its current account
Which of the following countries had the largest current account deficit in 2015?
Russia
USA
China
Japan - Correct Answers USA
Compared with 100 years ago, the number of currencies exchanged today is: - Correct Answers
many times more
If $1 = 90 yen, then a Harley Davidson that costs $8,000 would cost ____ in Japan - Correct
Answers 720,000 yen
Which of the following situations would NOT be compatible with the others?
New borrowing from the rest of the world
Expenditure being greater than income (production) in a nation
Rise in national wealth
a deficit in the current account - Correct Answers rise in national wealth
What is an exchange rate - Correct 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: - Correct Answers relative prices of
home and foreign goods
When the exchange value of the euro rises in terms of the USD, US residents find that European
imports are: - Correct Answers more expensive
A credit rating of A means: - Correct Answers easy access to low- interest loans
The great divergence refers to - Correct Answers the gap in income per capita between rich and
poor nations
Countries with good institutions have - Correct Answers higher per capita income
Emerging market countries are: - Correct Answers mainly countries that are growing and
becoming more integrated into the global economy.
A large and sudden currency depreciation is widely known as: - Correct Answers an exchange
rate or currency crisis.
Which European nation has kept its own currency and maintains a fixed value against the euro?
- Correct Answers Denmark
In which of the following categories would the sale of foreign currency with a forward
repurchase agreement be included? - Correct Answers A swap
A spot contract is a: - Correct Answers contract for the immediate exchange of currencies
