1) What is the price of one unit of a country's currency in the number of units of another country's currency called?

No answer provided a. The terms of trade b. The opportunity cost c. The global price d. The exchange rate e. The trade multiplier

2) Use the data table to answer the following question.

U.S. dollar per shekel (Israel) $0.30 U.S. dollar per euro (European Union) $1.20

Which of the following statements is true based on the data table?

No answer provided a. One shekel is worth four euros. b. One euro is worth four shekels. c. The shekel is appreciating while the euro is depreciating. d. The European Union does more business with the United States than with Israel. e. The same good will be less expensive in Israel than in the European Union.

3) If the dollar price of the euro increases from $1.50 to $2.00, the dollar is ________ and European goods are ________ expensive to Americans.

No answer provided a. appreciating; less b. appreciating; more c. depreciating; less d. depreciating; more e. depreciating; equally

4) The exchange rate is $1.25 Canadian dollar per U.S. dollar. If a good or service in Canada costs $50 in Canadian dollars, how many U.S. dollars would an American have to spend for that same product?

No answer provided a. $12.50 b. $28.50 c. $40 d. $62.50 e. $75

5) When a country's currency appreciates, its exports will ________ and its imports will ________.

No answer provided a. increase; decrease b. decrease; increase c. increase; increase d. decrease; decrease e. increase; remain constant