An increase in the real exchange rate will

A. raise national income

B. lower national income

C. make a country less competitive in international trade

D. lower the cost of foreign goods

E. c and d

Q2:The fall of the dollar beginning in 1985 can be attributed to

A. the growing U.S. budget deficit

B. the large U.S. trade deficit

C. rapid U.S. economic growth

D. the slowdown in U.S. economic growth relative to growth overseas

Q3: What is the name of the foreign bank account that a trader maintains in a foreign bank and from which they would request transfer of currency to the account of another trader with whom they have concluded a transaction?

A. short sale account

B. settlement account

C. interbank account

D. nostro account