Economics CC 2 Sec ON 1 Week 6 Homework 5

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

Question 1

Suppose a Mexican consumer wants to buy an American television for $500 and an American wants to buy a Mexican raincoat for 700 pesos. If the exchange rate is $0.10 = 1 peso, then the price of the television in pesos will be __________ and the price of the raincoat in dollars will be __________.  

·         5000 pesos;  $70  

·         50 pesos;  $7,000  

·         500 pesos;  $7  

·         5 pesos;  $7,000

Question 2

If the U.S. dollar appreciates in the foreign exchange market, U.S. exports will be __________ and U.S. imports will be __________.  

·         relatively less expensive; relatively less expensive  

·         relatively less expensive; relatively more expensive  

·         relatively more expensive; relatively less expensive  

·         relatively more expensive; relatively more expensive  

·         unaffected; relatively less expensive

Question 3

Suppose that the exchange rate between the U.S. dollar and the Mexican peso is 1 peso = $0.11.  If the U.S. dollar price per Mexican peso changes to 1 peso =$0.10, the peso is said to have __________ and the dollar to have __________.  

·         depreciated; appreciated  

·         appreciated; appreciated  

·         appreciated; depreciated  

·         depreciated; depreciated

Question 4

Exhibit 35-5

                                            U.S. $ Equivalent                    Foreign Currency per U.S. $

                Monday               Tuesday               Monday               Tuesday

Mexico (peso)   0.095     0.098     10.53     10.20

Japan (yen)        0.0085   0.0089   117.65   112.36

Thailand (baht) 0.024     0.020     41.44     50.00

Refer to Exhibit 35-5.  Based on the information provided in this table, between Monday and Tuesday, the U.S. dollar ____________ against the Japanese yen and the yen _____________ against the U.S. dollar.

·         appreciated; appreciated  

·         depreciated; appreciated  

·         appreciated; depreciated  

·         depreciated; depreciated

Question 5

If it takes 118 Japanese yen to buy one dollar, then how many dollars does it take to buy one euro?  

·         $0.0085  

·         $1.18  

·         $0.85  

·         $0.01286  

·         There is not enough information to answer the question.

Question 6

U.S. imports are considered:    

a credit or plus item in the U.S. balance of payments.

·         a credit or minus item in the U.S. balance of payments.    

·         a debit or plus item in the U.S. balance of payments.    

·         a debit or minus item in the U.S. balance of payments.

Question 7

At any given moment there is one exchange rate:

·         for all the world's currencies.    

·         for currencies in the free world.    

·         between every pair of currencies.    

·         established by the Federal Reserve System.

Question 8

If the dollar depreciates relative to other currencies, which of the following is true?

·         It takes more of the other currency to buy a dollar.    

·         It takes less of the other currency to buy a dollar.    

·         There is no change in the amount of the currency needed to buy a dollar.    

·         Not enough information to determine.

Question 9

Which of the following is a credit in the U.S. current account?    

·         A U.S. consumer buys a TV made in Malaysia.    

·         Singapore Airlines buys a jumbo jet made in the United States.    

·         British investors purchase U.S. government bonds.    

·         An American citizen flies to Lithuania on the Lithuanian Airlines.

Question 10

Which of the following would be a debit in the U.S. balance of payments?

·         the purchase of a Japanese car by an American    

·         the purchase of air service from a U.S. airline by a Japanese traveler    

·         the purchase of U.S. grain by a Japanese bakery