1. What is the indirect quotation for the British pound at US1.3505?

   	A.	0.7405
   	B.	0.8202
   	C.	0.7768
   	D.	None

1 points

QUESTION 24

1. A decrease in the current account deficit will place_____________ pressure on the home currency value, other things equal

   	A.	upward
   	B.	downward
   	C.	No
   	D.	upward or downward (depending on the size of the deficit)

1 points

QUESTION 25

1. If a country experiences low inflation relative to the US, its exports to the US should______________

   	A.	increase; decrease
   	B.	increase; increase
   	C.	decrease; increase
   	D.	decrease; decrease

1 points

Assume that the inflation rate becomes much higher in the U.K. relative to the U.S. This will place ____ pressure on the value of the British pound. Also, assume that interest rates in the U.K. begin to rise relative to interest rates in the U.S. The change in interest rates will place ____ pressure on the value of the British pound.

	A.	upward; downward
	B.	upward; upward
	C.	downward; upward
	D.	downward; downward