Credjt entries in the U.S. balance of paymentsA resule from foreign sales of US. goods and services, goodwill, financial claims, and realassetsB.result from U.S. purchases of foreign goods and services, goodwill, financial claims, andreal assets.C. give rise to the demand for dollars.D. give rise to the supply of dollars.

The balance of payment account refers to a statement which is used to record all the international…

Answered: Credjt entries in the U.S. balance of…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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If Canada is said to have a balance of payments deficit,this means thatOA.the Bank of Canada decreased its reserves of foreign exchangeB.theBank of Canada purchased some ofthe gold that it uses to back the Canadian dollarc.theBank of Canada used Canadian dollars to buy foreign exchange on the foreign exchange markets. O D. the Bank of Canada issued foreign exchange
The current exchange rate is $1.00 = 1.50 Swiss franc. The exchange rate is expected to be $1.00 = 1.25 Swiss franc in six months. The U.S. dollar is expected to A. depreciate and the U.S. will import more from Switzerland B. appreciate and the U.S. will export more to Switzerland C. appreciate and the U.S. will import more from Switzerland D. depreciate and the U.S. will export more to Switzerland
urgent dont chaptgpt answer Appreciation of the real exchange rate A. makes U.S. exports less expensive to foreigners. B. benefits all U.S. producers. C. makesJ.S. exports more expensive to foreigners. makest D. means a basket of U.S. goods would exchange for fewer foreign goods.
Which of the following will most likely cause a nation's currency to appreciate on the foreign exchange market? a. A decrease in domestic interest rates O b. An increase in foreign interest rates c. Stable domestic prices while the nation's trading partners are experiencing 10 percent inflation O d. Domestic inflation of 10 percent while the nation's trading partners are experiencing stable prices
If the exchange rate moves from $1 for one Euro to $1.50 for one Euro, then Select one: a. it becomes more expensive for a European to buy a European product. b. it becomes more expensive for an American investor to save at an American bank. c. it becomes more expensive for an American to buy a Mexican product. d. it becomes more expensive for an American to buy a European product.
Which of the following would increase the U.S. demand for foreign currency? a. an increase in U.S. real interest rate b. an increase in incomes abroad c. a decrease in the U.S. demand for foreign goods d. an increase in the U.S. demand for foreign goods e. a decrease in U.S. income O Icon Key Ox 0 F8 F9 prt sc F10
Using this table, determine the value of the balance of the current account. a. -$100 b. -$25 c. -$20 d. -$55
If U.S. securities pay 6 percent interest, and if Great Britain’s securities pay 8 percent interest, then a. pounds depreciate relative to dollars. b. pounds appreciate relative to dollars. c. Great Britain’s imports will fall. d. Great Britain’s exports will rise.
See attached.
A fall in the expected future exchange rate _ the supply of Canadian dollars. A decrease in the world demand for Canadian exports the supply of Canadian dollars. A. decreases; decreases B. increases; does not change C. increases; increases D. decreases; does not change

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