Track each student's skills and progress in your Mastery dashboards
Give this quiz to my class
Q 1/10
Score 0
The exchange rate of a country's currency measured against a weighted average of the currencies of its major trading partners is called the
60
market exchange rate
purchasing power parity exchange rate
effective exchange rate
nominal exchange rate
real exchange rate
Q 2/10
Score 0
If the value of a currency rises above the upper bounds in a managed float exchange rate system, what action could be taken?
60
subsidize exports
increase interest rates
sell the domestic currency
sell the foreign currency reserves
impose tariffs on goods
10 questions
Q.
The exchange rate of a country's currency measured against a weighted average of the currencies of its major trading partners is called the
1
60 sec
4.1.8a
Q.
If the value of a currency rises above the upper bounds in a managed float exchange rate system, what action could be taken?
2
60 sec
4.1.8b
Q.
If the UK wished to appreciate the sterling, the authorities could
3
60 sec
4.1.8b
Q.
Actions by authorities to keep the exchange rate significantly above its market value are likely to lead to
4
60 sec
4.1.8c
Q.
A country imports one commodity, the price of which is fixed in terms of foreign currency. After a depreciation of 10% in the value of its currency, imports fall from 50 million units to 40 million units. What is the PED for imports?
5
60 sec
4.1.8c
Q.
The following PEDs for exports and imports are for five countries. If the exchange rate of each depreciates by the same percentage, which country will see the biggest improvement in its trade balance?
6
60 sec
4.1.8c
Q.
The value of the $ against the £ changes from £0.50 to £0.60. Which is true
7
60 sec
4.1.8c
Q.
If a country is close to full employment and it experiences a depreciation in its currency, the most likely outcome is a
