4. In one way our money loose it's function is when the appearance becomes gray yet some features are still recognizable. 5. Trading means importing goods from other countries. 6. Currencies are being used domestically and internationally.
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TRUE OR FALSE
4. In one way our money loose it's function is when the appearance becomes gray yet some features are still recognizable.
5. Trading means importing goods from other countries.
6. Currencies are being used domestically and internationally.
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- A central bank can allow its currency to fall indefinitely, but it cannot allow its currency to rise indefinitely. Why not?Use the demand-and-supply of foreign currency graph to determine what would happen to a small, open economy that experienced capital outflows.8. All exchange rates change over time due to economic circumstances a. True b. False
- 1._______ The total value of a nation’s exports minus thetotal value of its imports over some period of time.2._______ The ability to produce a specific product moreefficiently than any other nation.3._______ Selling and shipping raw materials or products toother nations.4._______ The ability to produce a specific product moreefficiently than any other product.5._______ All business activities that involve exchangesacross national boundaries.6._______ The total flow of money into a country minus thetotal flow of money out of that country over thesame period of time.7._______ A tax levied on a particular foreign product entering a country.8._______ A complete halt to trading with a particular nationor in a particular product.9._______ An international barter transaction.10. _______ An internationally supported bank that providesloans to developing countries to help them grow.a. countertradeb. foreign exchange controlc. multilateral development bank (MDB)d. absolute advantagee. import…If $1 USD = $1.09 CAD (Canadian dollar), which country has a stronger currency today? How do you know that it is stronger? What do we mean when we say that a currency is strong?When a country's currency appreciates, is this generally good news or bad news for a country's consumers? Is it generally good or bad news for the country's businesses? Explain your reasoning - try to use examples.
- Show how each of the following would affect the U.S. BOP. Include a description of the debit and credit items, and in each case say which specific account is affected (eg, CA, imports of goods and services, IM; FA, exports of financial assets, EXA; and so on). Suppose an American, David, is visiting Milan on business selling messenger bags to merchants. He spends a total of $800 (6500) for his hotel. David pays for his hotel using his Mastercard (held in the United States). The Milanese hotel now has a claim against Mastercard, so there is an increase in home assets owned by foreigners. In Milan, David meets with an Italian business associate, Francesco. Francesco plans to purchase a dozen of David's messenger bags (worth $120 each) for a bicycle messenger service he owns. He pays David the $1,440 using a checking account with Banca Intesa (an Italian bank). Please draw a table like the sample image (including arrows which indicate the increase or decrease) and explain a bit under…1. Somebody has bought US Dollar with one-third of his money and Euro with two-third. Dollar has gained value over national currency by D % each month and Euro E % each month. The average monthly infiation rate is Y. Find the percentage loss of him/her at the end of a year. D=3,2 E=3 Y=1,7Why some countries are using thin film interference effect in the currencies?
- 1. When interest rate increases, demand for equity Select one: a. Does not change b. Increase c. Decreases d. None of the above 2. Which macroeconomic fundamentals can influence the stability on the value of currency? a. Balamce of payment b. Exchange rate c. Inflation rate d. Gross domestic product 3. When interest rate increases, what hapoens to exchange rate? a. Decreases b. None of the above c. Does not change d. Increase 4. 1 Sales - cost of good sold = Select one: a. Retained income b. Gross profit c. Operaring cost d. Gross income 5. The financial stability of a country can be seen in a. Inflation b. Balamce of payment c. Gross domestic product d. Exchange rateUse graph: (Hint: You can think of US dollar as the foreign currency in foreign exchange market) (3) a) This summer has been extremely hot. In fact, many crops that need water to thrive have been suffering from dry conditions. Does bad weather, which reduces crop production, make the Bangladeshi Taka weaker or stronger? b) The popularity of the leader of a nation can affect the value of their currency. If the Prime Minister of Bangladesh has a good popularity rating with the citizens of Bangladesh, does that make the Taka stronger or weaker? Can you describe why? Giving reasons, state whether the following statements are True or False. Give the reasoning regardless of True/ False (4)a. When Balance of payment is Positive, Official Reserve increases. b. Excess of foreign exchange receipts over foreign exchange payments on account of accommodating transactions equals deficit in the Balance of Payments.c. Export and import of machines are recorded in capital account of Balance of Payments…The following table lists balance of payment current accounts for Country A. Current Accounts 1. Exports of goods, services, and income $ 171,453 2. Goods $ 93,043 3. Services 46,689 4. Income receipts on U.S. assets abroad 31,721 5. Imports of goods, services, and income −161,407 6. Goods −93,578 7. Services −32,189 8. Income payments on foreign assets in the United States −35,640 a. What is Country A’s total current accounts? b. What is Country A’s balance on goods? (Negative amount should be indicated by a minus sign.) c. What is Country A’s balance on services? d. What is Country A’s balance on investment income? (Negative amount should be indicated by a minus sign.)
