Foreign Exchange Mcqs for Economics


Q.  The theory of international exchange that holds that exchange rates adjust to offset differences in countries inflation rates in the ?

a. price feedback theory
b. trade feedback theory
c. J-curve theory
d. purchasing power parity theory


ANSWER: See Answer
 
No explanation is available for this question!
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MCQs:  Given a system of floating exchange rates falling income in the United States would trigger a (an) ?
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MCQs:  For the United States suppose the annual interest rate on government securities equals 12 percent while the annual inflation rate equals 8 percent For Japan the annual interest rate on government securities equals 10 percent while the annual inflation rate equals 5 percent the above variables would cause investment funds to flow from ?
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MCQs:  If Japan runs current account deficit and exchange rates are floating?
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MCQs:  Suppose Canada and Switzerland were the only two countries in the world There exists an excess supply of Swiss francs on the foreign exchange market This suggests that ?
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MCQs:  When the price of foreign currency (the exchange rate) is above the equilibrium level ?
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MCQs:  The high foreign exchange value of the U.S dollar in the early 1980s can best be explained by ?
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MCQs:  IF when cost $4 per bushel in the United States and 2 pounds per bushel in Great Britain then in the presence of purchasing power parity the exchange rate should be ?
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MCQs:  Assume that the United States faces a percent inflation rate while no (zero) inflation exists in Japan. According to the purchasing power parity theory over the long run the dollar would be expected to ?
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MCQs:  Relatively low real interest rates in the United States tend to ?
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MCQs:  If the exchange rate between Swiss francs and British pounds is 5 francs per pound, then the number of pounds that can be obtained for 200 francs equals ?
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MCQs:  Exchange rate overshooting often occurs because ?
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MCQs:  According to the asset market approach increased investor confidence in the Mexican economy would cause the peso to ?
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MCQs:  The purchasing power parity theory has limitations in forecasting exchange rate fluctuations for all of the following reasons except ?
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MCQs:  The asset market approach views exchange rates as being determined mainly by ?
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