Answer Happy

6) Suppose there is a leftward shift of the U.S. demand curve for the Indian rupee and a decrease in the exchange rate of the rupees per dollar, this would be likely the result of an increase in the U.S. inflation rate relative to the inflation rate in India, a change in U.S.consumers tastes away from Indian products and toward products made in China, Thailand, and South Korea CUS buyers perceiving that domestically-produced products are of a lower quality than products made in India. Dall of the above 7) What does a syndicated Eurocredit loan represent? A It represents a loan by a single Eurobank to a syndicate of corporations. B. It represents a loan by a single Eurobank to a syndicate of country governments C It represents a direct loan by a syndicate of oil-producing exporters to a less developed country It represents a loan by a group of Eurobanks to a borrower. A and B 8) Also known as the central bank of the world's central banks, the attempts to facilitate cooperation among countries with regard to international transactions and provides assistance to countries experiencing a financial crisis World Bank International Financial Corporation (IFC) C World Trade Organization D. International Development Association (IDA) E Bank for International Settlements (BIS) 9) What is the so-called "J curve" effect? A. It is the continuous long-term inverse relationship between a country's current account balance and the country's growth in gross national product B It is the short-run tendency for a country's balance of trade to deteriorate even while its a currency is depreciating. c. It is the tendency for exporters to initially reduce the price of goods when their own currency appreciates D. It is the reaction of a country's currency to initially depreciate after the country's inflation rate declines 10) Suppose a bank is expecting a foreign currency to depreciate, a bank will earn money on this expectation by borrowing dollars, converting the proceeds to the foreign currency, lending in the foreign country, and using the proceeds from this investment to repay the dollar loan A true B false 11) Among the following theories, which one suggests that firms seek to penetrate new markets over time? A theory of comparative advantage B. imperfect markets theory product cycle theory D. none of the above 12) In the U.S. balance of payments, purchases of foreign assets by U.S. residents are tabulated as a (an): unilateral transfer B. capital inflow current account outflow. capital outflow A с