Quiz 5 - 1°* attempt
The figure below illustrates the market for British pounds. D and S; are the nonofficial demand and supply curves of the British pounds, respectively.
Exchange Rate ($/£)
Sperf
Se
2.50f-----mmn-2 Qo mmmmm=mm—=-s ¢
2.00)--========= ." -------
: : : D:
0 5 53. ; ¢
(millions)
If the U.S. Federal Reserve uses a contractionary monetary policy to raise U.S. interest rates, the curve would shift right and the pound would tend to
Multiple Choice
O Sg; appreciate.
O Dg; depreciate.
. Sg¢; depreciate.
The figure below illustrates the market for British pounds. D and S; are the nonofficial demand and supply curves of the British pounds, respectively.
Exchange Rate ($/£)
Sperf
St
2.50}--=nnnensd G omm e mm e .
: E
E111) [ES——— Fomeenes 5
: : :
S
: ; : D:
0 5 55' 6 £
(millions)
Who among the following groups will most likely benefit if the exchange rate is pegged at $2.50 per pound?
Multiple Choice
Q Import-competing producers in the UK.
. British importers
O British exporters
, Which of the following is NOT a function of the interbank part of the foreign exchange market?
Multiple Choice
. Provides clearing services for organizations that prefer to use different curencies
O Provides a bank with a continuous stream of information on conditions in the foreign exchange market
O Provides a bank the means to readjust its own position quickly and at low cost when it separately conducts a large trade with a customer
O Permits a bank to take on a position in a foreign currency quickly if the bank and its traders want to speculate on exchange-rate movements in the near future
In the foreign exchange market, what could be a consequence of an increase in the purchase of equity shares in Toyota, a Japanese automobile firm, by USS. residents?
Multiple Choice
(O Demand for the dollar will increase
O The supply curve for the dollar will shift to the left
@ e collor il cepreciate
O Yen will depreciste
Undera floating exchange-rate system, the value of the dollar per euro exchange rate rises when
Multiple Choice
(O the s trode geicit with the euro-area courtries ncreases.
the inflation rate in the USS. is the same as the inflation rate in the euro-area.
. European demand
for US. products increases
the US. govemment raises U.S. interest rates.
The figure below illustrates the market for British pounds. D and S; are the nonofficial demand and supply curves of the British pounds, respectively.
Exchange Rate ($/£)
Sperf
Se
2.50f-----mmn-2 Qo mmmmm=mm—=-s ¢
2.00)--========= ." -------
: : : D:
0 5 53. ; ¢
(millions)
If the U.S. Federal Reserve uses a contractionary monetary policy to raise U.S. interest rates, the curve would shift right and the pound would tend to
Multiple Choice
O Sg; appreciate.
O Dg; depreciate.
. Sg¢; depreciate.
The figure below illustrates the market for British pounds. D and S; are the nonofficial demand and supply curves of the British pounds, respectively.
Exchange Rate ($/£)
Sperf
St
2.50}--=nnnensd G omm e mm e .
: E
E111) [ES——— Fomeenes 5
: : :
S
: ; : D:
0 5 55' 6 £
(millions)
Who among the following groups will most likely benefit if the exchange rate is pegged at $2.50 per pound?
Multiple Choice
Q Import-competing producers in the UK.
. British importers
O British exporters
, Which of the following is NOT a function of the interbank part of the foreign exchange market?
Multiple Choice
. Provides clearing services for organizations that prefer to use different curencies
O Provides a bank with a continuous stream of information on conditions in the foreign exchange market
O Provides a bank the means to readjust its own position quickly and at low cost when it separately conducts a large trade with a customer
O Permits a bank to take on a position in a foreign currency quickly if the bank and its traders want to speculate on exchange-rate movements in the near future
In the foreign exchange market, what could be a consequence of an increase in the purchase of equity shares in Toyota, a Japanese automobile firm, by USS. residents?
Multiple Choice
(O Demand for the dollar will increase
O The supply curve for the dollar will shift to the left
@ e collor il cepreciate
O Yen will depreciste
Undera floating exchange-rate system, the value of the dollar per euro exchange rate rises when
Multiple Choice
(O the s trode geicit with the euro-area courtries ncreases.
the inflation rate in the USS. is the same as the inflation rate in the euro-area.
. European demand
for US. products increases
the US. govemment raises U.S. interest rates.
