Economics CC 2 Sec ON 1 Week 6 Quiz 5

Economics CC 2 Sec ON 1 Week 6 Quiz 5 | chatbot las positas  community college

Question 1

When imports of goods exceed exports of goods, the financial account shows a deficit.  

·         True  

·         False

 

Question 2

A stereo system in Mexico costs 3,200 Mexican pesos. If the dollar price of one Mexican pesos is $0.11, then the U.S. dollar value of the same stereo system is $352.  

·         True  

·         False

 

Question 3

Which of the following would be included in the financial account of the U.S. balance of payments?  

·         The purchase of a stock in a U.S. corporation by a foreigner  

·         The purchase of a Japanese computer by a U.S. corporation  

·         The purchase of a plane ticket from Australian Airlines by a U.S. resident  

·         The purchase of a German car by a U.S. resident

 

Question 4

Given an exchange rate of 120 yen = $1, what is the U.S. dollar price of 1 yen?  

·         $0.025  

·         $0.0083  

·         $120  

·         $0.0012  

·         $1

 

Question 5

Which of the following transactions will be included in the financial account of the balance of payments of any country?

  

·         Export of goods  

·         Import of goods  

·         Investment in stock  

·         Export of services  

·         Import of services

 

Question 6

The average household in Australia spends AUD 560 on groceries per month. What would this grocery bill amount to in U.S. dollars if the current exchange rate is AUD 1.55 per dollar?  

·         $868.00  

·         $560.00  

·         $447.91  

·         $361.29  

·         $222.00

 

Question 7

If the U.S. dollar price of one Japanese yen was $0.009 in 1997 and $0.011 in 2001, then the reciprocal exchange rate adjusted from $1 = ¥111.1 in 1997 to $1 = ¥90.9 in 2001. This implies that over this time period, the U.S. dollar experienced a depreciation relative to the Japanese yen.  

·         True  

·         False

 

Question 8

An exchange rate can be described as:  

·         the price of a foreign currency as determined by the World Bank.  

·         the price of one country’s currency in terms of another country’s currency.  

·         the dollar value of imports and exports undertaken in the world economy during a year.  

·         the price of foreign currency as established by the relative amount of tourism.  

·         the dollar value of U.S. international trade.

 

Question 9

Which of the following transactions will be included in the financial account of the balance of payments of any country?  

·         Export of goods  

·         Import of goods

 

·         Investment in stock  

·         Export of services  

·         Import of services

 

Question 10

A country that is running a current account deficit will have:  

·         zero net exports.  

·         positive net exports.  

·         negative net exports.