True or False questions. (1 to 12)

1) Under the oating exchange rate regime, a country can simultaneously have current account and capital account decits. 2) An increase in the demand of British assets by US investors would be expected to cause an increase in the supply of Canadian dollars and an increase in the $f exchange rate. 3)Under the xed exchange rate regime any current account decit must be nanced by trade balance surplus. 4) The BID exchange rate can be higher than the ASK exchange rate when the currency is expected to appreciate. 5) If the Russian government buys Russian rubles (RUB) (by selling their US dollar reserves) in the ForEx market, then, given everything else is constant, the USDIRUB exchange rate will increase. 6) Devaluation of a currency refers to an increase in the foreign exchange value of a currency that is pegged to gold or another currency. 7) If bank AAA quotes 63$ exchange bid-ask spread as 3.056% ~3.10A"$ it means that you need 3.10 euros to buy 1$ 'om the bank. 8) 15 16 exchange rate quote is an example of a quote in European terms? 9) Under the Bretton Wood System if the demand for foreign exchange (*2) increases, the SH: exchange rate appreciates. 10) Ideal exchange rate system involves independent monetary policy. 1]) To nd how many (is one will get for 5 one needs to multiply 5 by the :96 exchange rate. 12) If i appreciates relative to the US dollar, British goods are cheaper for US residents, and US goods are more expensive for British citizens