1. Suppose Russia's GDP increases at a faster rate relative to its trading partners over the course of the year. What will be the immediate impact on Russia' balance of trade?

a. increase. b. decrease. c.remain comstant. d. cannot be determine

2.Assume that the Japanese government increases its quota on German manufacturer vehicles. Which of the following will occur, all else being equal?

a. the Japanese BOT will increase b. the Japanese BOT will decrease c. the German BOT will increase. d. the Japanese official reserve account will increase

3. An appreciation in the value in a domestic country's currency will tend to lead to an increase in that country's balance of trade in the long run, all else being equal. True of False

4. In 2007 the United States had a current deficit account. The current account deficit implies that the United States

a. produced more output than it comsumed b. has a net inflow of capital. c. had a positive official reserve balance. d. none of the above

5. If the dollar appreciates against the pound, the US BOT will increase, all else being equal. True or False

6. Exchange rate flunctuations only impacts the cash flows of multinational corporations. True or False

7. the spot market deals with the exchange of foreign currency for immediate delivery. True or False

8. which of the following is likely to occur if the mexican peso depreciates against the canadian dollar, all else being equal?

a. Mexico will export less goods ans services to Canada. b. Canadian corporation will export more goods to Mexico. c. Mexico will import more goods and services from Canada d. none

9. If someone tells you that the dollar appreciated relative to the pound, it must also be true that the pound depreciated against the dollar. True or False