Q. The Gold Standard was prevalent in the world from:
✅ Correct Answer: (C)
From 1870 till First World War
International Economics MCQs and Notes
Q. The quantity of dollars supplied to the foreign Exchange market would increase if, other things remaining equal:
✅ Correct Answer: (A)
Incomerises in Canada
Q. That identical godos should cost the same in all nations, assuming tis costless to ship godos between nations and there are no barriers to trade, is a reflection of the:
✅ Correct Answer: (B)
Law of one price
Q. Long-run Exchange ratemovements are governed by all of the following except:
✅ Correct Answer: (D)
Interest rate levels
Q. In the short run, Exchange rates respond tomarketforcessuch as:
✅ Correct Answer: (B)
Expectations of future Exchange rates
Q. Concerning exchange-ratedetermination, “market fundamentals” include all of the Following except:
✅ Correct Answer: (C)
Speculative opinión about future Exchange rates
Q. An Exchange rate is said to __________ when its short-run response to a change in market Fundamentals is greater than its long-run response. a
✅ Correct Answer: (A)
Overshoot
Q. Starting at the point of equilibrium between the money supply and the money demand, an increase in the domestic money supply causes the value of the home currency to:
✅ Correct Answer: (A)
Depreciate relative to other currencies
Q. Which example of market expectations causes the dollar to appreciate against the yen? Expectations that the U.S. economy will have:
✅ Correct Answer: (B)
Higher future interest rates than Japan
Q. Under a system of floating Exchange rates, relatively low productivity and high inflation rates in the United States result in:
✅ Correct Answer: (A)
An increase in the demand for foreign currency, a decrease in the supply of foreign currency, and a depreciación in the dollar