Please Answer the following questions.
Here's the reference link:
https://forms.gle/hAsNAYMCphTxYij56
password: azprems
EXERCISES Multiple Choice: Encircle the correct answer. 1. This tells meaningfully whether the country earned more than it paid out during the period in terms of trade. a. Balance sheet b. current account c. balance of trade d. capital account 2. The exchange rate a. enables one to know the value of the foreign currency. b. establishes the international value of a currency in international transactions. c. serves as a connecting link between the price levels of one country with the rest of the world. d. all of the above. 3. If exchange rates are high a. it will stimulate exports b. discourage the level of imports c. stimulate both exports and imports d. both a and b. 4.People who engage in the buying and selling of foreign exchange and who makes profit out of the difference between the buying and selling of foreign exchange. a. Foreign exchange dealers b. Foreign exchange suppliers c. Foreign exchange users d. all of the above 5.Trade in services is a component of a. current account b. capital account c. official reserves d. none of the above6. Being the lender of last resort, the holds international reserves for the foreign exchange requirements of the country in case supply from domestic commercial banks falls short of the total demand. a. Bangko Sentral ng Pilipinas b. Asian Development Bank c. World Bank Group d. International Monetary Fund Please refer to the figure below for #s 7-10. 7. Which of the following statements is true? a. The quantity of pounds demanded falls when the dollar appreciates. b. The quantity of pounds supplied declines as the dollar price of the pound rises. C. At the equilibrium exchange rate, the pound price of $1 is % pound d. The dollar appreciates if the demand for pounds increases. 8. At the price of$2 for 1 pound in this figure: a. the dollar -pound exchange rate is unstable. b. the quantity of pounds supplied equals the quantity demanded. c. the dollar price of 1 pound equals the pound price of $1. d. US goods exports to Britain must equal US goods imports from Britain9. Other things equal, a leftward shift of the demand curve in this figure: a. would depreciate the dollar b. would create a shortage of pounds at the previous price of $2 for 1 pound. c. might be caused by a major recession in the United States. d. might be caused by a significant rise of real interest rates in Britain. 10. Other things equal, a rightward shift of the supply curve in this figure would: a. depreciate the dollar and might be caused by a significant rise of real interest rates in Britain. b. depreciate the dollar and might be caused by a significant fall of real interest rates in Britain. c. appreciate the dollar and might be caused by a significant rise of real interest rates in US. d. appreciate the dollar and might be caused by a significant fall of real interest rates in US. OH NWA -51 dollar price of 1 pound D1 5 10 15 quantity of pounds
