Please answer this with explanation.

1. The price of one currency in terms of another is called (a) purchasing power parity. (b) the terms of trade. (c) the exchange rate. (d) a currency band. 2. An exchange-rate system in which the nominal exchange rate is set by the government is known as (a) a flexible-exchange-rate system. (b) a floating-exchange-rate system. (c) an exchange-rate union. (d) a fixed-exchange-rate system. 3. When the domestic currency strengthens under a fixed-exchange-rate system, this is called (a) a devaluation. (b) a revaluation. (c) a depreciation. (d) an appreciation. 4. Three-wheel cars made in North are sold for $5,000. Four-wheel cars made in South are sold for DM10,000. The real exchange rate between North and South is four three wheel cars for three four-wheel cars. The nominal exchange rate between the two countries is (a) DMO.50/E (b) DMO.66/E (C) DM1.50/E (d) DM2.00/E 5. When the domestic currency buys fewer units of foreign currency, the (@) nominal exchange rate falls. (b) nominal exchange rate rises. (c) real exchange rate rises. (d) real exchange rate falls.6. The */US$ exchange rate fell from *240/US$ to V102/dollar, while the US$/{ exchange rate fell from US$2.22/E to US$1.62/E. As a result, (a) the dollar appreciated relative to the yen, but depreciated relative to the pound. (b) the dollar appreciated relative to both the yen and the pound. (c) the dollar depreciated relative to the yen, but appreciated relative to the pound. (d) the dollar depreciated relative to both the yen and the pound. 7. A rise in the real exchange rate is called (a) a real depreciation. (b) a real bargain. (c) a real devaluation. (d) a real appreciation. 8. The idea that similar foreign and domestic goods, or baskets of goods, should have the same price when priced in terms of the same currency is called (a) purchasing power parity. (b) equity. (c) efficiency. (d) the tragedy of the commons. 9. Purchasing power parity does not hold in the short to medium run because (a) exports don't equal imports. (b) exchange rates fluctuate too much. (() most business cycles are caused by shocks to aggregate demand. (d) some goods aren't internationally traded. 10. A depreciation of the dollar causes (a) an increase in the prices of U.S. exports. (b) an increase in the prices of U.S. imports. (c) a decrease in U.S. exports. (d) an increase in U.S. imports.11. Suppose the US$/EURO exchange rate falls. Then (a) French firms will import more from the United States into France. (d) the dollar is less valuable relative to the euro. (c) U.S. firms will export less to France. (d) the euro is more valuable relative to the dollar. 12. In a flexible-exchange-rate system, the value of a currency is determined by (a) the government. (b) the intersection of the 15 and LMcurves. (c) Swiss gnomes. (d) the demand and supply for the currency in the foreign exchange market.13. Under a flexible-exchange-rate system, an increase in the demand for Japanese Yen would cause the U.S. dollar/Japanese yen exchange rate to (a) fall (b) rise (c) remain unchanged, because supply also increases. (d) remain unchanged, because the exchange rate is set by the central bank. 14. There's been a real depreciation of the dollar over the past month. In the long run, you would expect the quantity of (a) American imports to fall and the quantity of American exports to fall. (b) American imports to rise and the quantity of American exports to rise. (c) American imports to rise and the quantity of American exports to fall. (d) American imports to fall and the quantity of American exports to rise. 15. When the euro falls in value relative to other currencies, then (a) European exports rise in price. (b) neither European exports nor imports rise in price. (c) goods imported into Europe rise in price. (d) both European exports and imports rise in price