- 5 Test Questions 4 Each 1 Us Exports Foreign Travel In The United States And Foreign Capital Inflow Into The Uni 1 (124.04 KiB) Viewed 43 times
5. Test questions (4% each): 1) US exports, foreign travel in the United States, and foreign capital inflow into the United States give rise to: (a) depreciation of the US dollar; (b) a supply of foreign currencies to the United States; (c) a demand for foreign currencies in the United States; (d) decreased foreign exchange reserves in the United States. 2) Which of the following transactions represents debit on the current account section of the US's balance of payments? (a) The Arab Capital Investment Corporation makes a loan to a US firm; (b) A US company exports goods to Canada; (c) US firms and individuals receive dividends on investments made in Latin America; (d) US tourists in England purchase British pounds. 3) The capital account on a country's balance of payments does not include: (a) capital inflows to the country; (b) capital outflows from the country; (c) income on investment abroad; (d) purchase of an automobile assembly plant in the country by foreign company. 4) Higher inflation in the United States relative to that in Canada, ceteris paribus, is predicted to cause a(n): Price of U.S. dollars in Canadian dollars S 1,00 D Qº Q of U.S. S (a) decrease in the supply of U.S. dollars. (b) increase in the demand for U.S. dollars. (c) decrease in the price of the U.S. dollar in terms of the Canadian dollar. (d) increase in the price of the U.S. dollar in terms of the Canadian dollar. Show on the graph ! 5) The central reserve currency for international trade under the Bretton Woods system was the: (a) U.S. dollar; (b) French franc; (c) Japanese yen; (d) British pound sterling.