A pair of hiking boots costs $120 in the U.S., if the real exchange rate is 6/5 and the nominal exchange rate is 2 Brazilian reais per dollar, what is the price of the same hiking boots in Brazil?

If a country's exports were 500 billion pesos and its imports were 300 billion pesos, what would its trade balance be?

A U.S. grocery store chain bought $800,000 worth of Kenyan currency from a bank in Kenya. It then used these funds to buy $800,000 worth of coffee from Kenyan coffee growers.

As a result of this exchange, by how much and in which direction did:

A. U.S. net exports change?

B. U.S. net capital outflow change?