记住的英文CHAPTER 13—EXCHANGE RATE DETERMINATION
MULTIPLE CHOICE
1. The relationship between the exchange rate and the prices of tradable goods is known as the:
a. Purchasing-power-parity theory
b. Ast-markets theory
c. Monetary theory
d. Balance-of-payments theory
ANS: A PTS: 1
2. If the exchange rate between Swiss francs and British pounds is 5 francs per pound, then the
number of pounds that can be obtained for 200 francs equals:
a. 20 pounds
b. 40 pounds
c. 60 pounds
d. 80 pounds
ANS: B PTS: 1
3. Low real interest rates in the United States tend to:
a. Decrea the demand for dollars, causing the dollar to depreciate
b. Decrea the demand for dollars, causing the dollar to appreciate
c. Increa the demand for dollars, causing the dollar to depreciate
d. Increa the demand for dollars, causing the dollar to appreciate
ANS: A PTS: 1
4. High real interest rates in the United States tend to:
a. Decrea the demand for dollars, causing the dollar to depreciate
b. Decrea the demand for dollars, causing the dollar to appreciate
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c. Increa the demand for dollars, causing the dollar to depreciate
d. Increa the demand for dollars, causing the dollar to appreciate
ANS: D PTS: 1
5. Assume that the United States faces an 8 percent inflation rate while no (zero) inflation exists in
Japan. According to the purchasing-power parity theory, the dollar would be expected to:
a. Appreciate by 8 percent against the yen
b. Depreciate by 8 percent against the yen
c. Remain at its existing exchange rate
d. None of the above
ANS: B PTS: 1
6. In the prence of purchasing-power parity, if one dollar exchanges for 2 British pounds and if a
VCR costs $400 in the United States, then in Great Britain the VCR should cost:
a. 200 pounds
b. 400 pounds
c. 600 pounds
d. 800 pounds
ANS: D PTS: 1
7. If wheat costs $4 per bushel in the United States and 2 pounds per bushel in Great Britain, then in
the prence of purchasing-power parity the exchange rate should be:
a. $.50 per pound
b. $1.00 per pound
c. $2.00 per pound
d. $8.00 per pound
ANS: C PTS: 1
8. A primary reason that explains the appreciation in the value of the U.S. dollar in the 1980s is:
a. Large trade surplus for the United States
b. Relatively high inflation rates in the United States
c. Lack of investor confidence in the U.S. monetary policy
d. Relatively high interest rates in the United States
ANS: D PTS: 1
9. The high foreign exchange value of the U.S. dollar in the early 1980s can best be explained by:
a. Additional investment funds made available from overas
b. Lack of investor confidence in U.S. fiscal policy
c. Market expectations of rising inflation in the United States
d. American tourists overas finding costs increasing
ANS: A PTS: 1
10. When the price of foreign currency (i.e., the exchange rate) is below the equilibrium level:
a. An excess demand for that currency exists in the foreign exchange market
b. An excess supply of that currency exists in the foreign exchange market
c. The demand for foreign exchange shifts outward to the right
d. The demand for foreign exchange shifts backward to the left
ANS: A PTS: 1
11. When the price of foreign currency (i.e., the exchange rate) is above the equilibrium level:
a. An excess supply of that currency exists in the foreign exchange market
b. An excess demand for that currency exists in the foreign exchange market
c. The supply of foreign exchange shifts outward to the right
d. The supply of foreign exchange shifts backward to the left
ANS: A PTS: 1
12. The appreciation in the value of the dollar in the early 1980s is explained by all of the following
except:
a. The United States being considered a safe haven by foreign investors
b. Relatively high real interest rates in the United States
c. Confidence of foreign investors in the U.S. economy
d. Relatively high inflation rates in the United States
ANS: D PTS: 1
13. Suppo Mexico and the United States were the only two countries in the world. There exists an
excess supply of pesos on the foreign exchange market. This suggests that:
a. Mexico's current account is in surplus
b. Mexico's current account is in deficit
c. The U.S. current account is in deficit
d. The U.S. current account is in equilibrium
ANS: B PTS: 1
14. If Canada runs a trade surplus with Mexico and exchange rates are floating:
a. The peso will depreciate relative to the dollar
b. The dollar will depreciate relative to the peso
c. The prices of all foreign goods will fall for Canadians
d. The prices of all foreign goods will ri for Canadians
ANS: A PTS: 1
15. If Mexico's labor productivity ris relative to Europe's labor productivity:
a. The peso tends to depreciate against the euro in the short run
b. The peso tends to appreciate against the euro in the short run
炒红薯粉c. The peso tends to depreciate against the euro in the long run
d. The peso tends to appreciate against the euro in the long run
ANS: D PTS: 1
16. The international exchange value of the U.S. dollar is determined by:
a. The rate of inflation in the United States
b. The number of dollars printed by the U.S. government
c. The international demand and supply for dollars
d. The monetary value of gold held at Fort Knox, Kentucky
ANS: C PTS: 1
17. For the United States, suppo the annual interest rate on government curities equals 8 percent
while the annual inflation rate equals 4 percent. For Japan, suppo the annual interest rate on government curities equals 10 percent while the annual inflation rate equals 7 percent. The variables would cau investment funds to flow from:
娜的多音字a. The United States to Japan, causing the dollar to depreciate
b. The United States to Japan, causing the dollar to appreciate
c. Japan to the United States, causing the yen to depreciate
d. Japan to the United States, causing the yen to appreciate
ANS: C PTS: 1
18. For the United States, suppo the annual interest rate on government curities equals 12
percent while the annual inflation rate equals 8 percent. For Japan, suppo the annual interest rate equals 5 percent. The variables would cau investment funds to flow from:
a. The United States to Japan, causing the dollar to depreciate
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真情世界b. The United States to Japan, causing the dollar to appreciate
c. Japan to the United States, causing the yen to depreciate
d. Japan to the United States, causing the yen to appreciate
ANS: A PTS: 1
19. Given a system of floating exchange rates, stronger U.S. preferences for imports would trigger:
a. An increa in the demand for imports and an increa in the demand for foreign currency青春期性教育课
b. An increa in the demand for imports and a decrea in the demand for foreign currency
c. A decrea in the demand for imports and an increa in the demand for foreign currency
d. A decrea in the demand for imports and a decrea in the demand for foreign currency
ANS: A PTS: 1
20. Given a system of floating exchange rates, weaker U.S. preferences for imports would trigger:
a. An increa in the demand for imports and an increa in the demand for foreign currency
b. An increa in the demand for imports and a decrea in the demand for foreign currency
c. A decrea in the demand for imports and an increa in the demand for foreign currency
d. A decrea in the demand for imports and a decrea in the demand for foreign currency
ANS: D PTS: 1
21. Under a system of floating exchange rates, relatively low productivity and high inflation rates in
the United States result in:
a. An increa in the demand for foreign currency, a decrea in the supply of foreign
currency, and a depreciation in the dollar
b. An increa in the demand for foreign currency, an increa in the supply of foreign
currency, and an appreciation in the dollar
c. A decrea in the demand for foreign currency, a decrea in the supply of foreign currency,
and a depreciation in the dollar
雪的图片大全d. A decrea in the demand for foreign currency, an increa in the supply of foreign
currency, and an appreciation in the dollar
ANS: A PTS: 1
22. Under a system of floating exchange rates, relatively high productivity and low inflation rates in
the United States result in:
a. An increa in the demand for foreign currency, a decrea in the supply of foreign
currency, and a depreciation in the dollar
b. An increa in the demand for foreign currency, an increa in the supply of foreign
currency, and an appreciation in the dollar
c. A decrea in the demand for foreign currency, a decrea in the supply of foreign currency,
and a depreciation in the dollar
d. A decrea in the demand for foreign currency, an increa in the supply of foreign
currency, and an appreciation in the dollar
ANS: D PTS: 1
23. Which example of market expectations caus the dollar to appreciate against the
yen--expectations that the U.S. economy will have:
a. Faster economic growth than Japan
b. Higher future interest rates than Japan
c. More rapid money supply growth than Japan
d. Higher inflation rates than Japan
ANS: B PTS: 1
24. Which example of market expectations caus the dollar to depreciate against the
yen--expectations that the U.S. economy will have:
a. Faster economic growth than Japan
b. Higher future interest rates than Japan
c. Less rapid money supply growth than Japan
d. Lower inflation rates than Japan
ANS: A PTS: 1
