ECO 103 Ch.20 Intl Finance

Choose the correct answer

QUESTION 1

Describing a country's currency as appreciating means that its:

1. government is stabler
2. money is more available
3. money is more valuable
4. trade balance is improving

5 points

QUESTION 2

The current account is found by adding the trade balance and subtracting all the following except:

1. income from overseas investments
2. income outflow of foreignownedinvestments
3. net gov grants
4. private transfers and pensions

5 points

QUESTION 3

A dirty float is when a country lets its exchange rate:

1. collapse
2. vary within a certain range
3. be determined by unreliable data
4. be affected by speculators

QUESTION 4:

real per S 3 D2 D1 240 320 400 480 Q$