Economics CC 2 Sec ON 1 Week 6 Homework 5 | chatbot las positas community college
Suppose a Mexican consumer wants to buy an American television for $500 and an American wants to buy a Mexican raincoat for 700 pesos. If the exchange rate is $0.10 = 1 peso, then the price of the television in pesos will be __________ and the price of the raincoat in dollars will be __________.
5000 pesos; $70
50 pesos; $7,000
500 pesos; $7
5 pesos; $7,000
If the U.S. dollar appreciates in the foreign exchange market, U.S. exports will be __________ and U.S. imports will be __________.
relatively less expensive; relatively less expensive
relatively less expensive; relatively more expensive
relatively more expensive; relatively less expensive
relatively more expensive; relatively more expensive
unaffected; relatively less expensive
Suppose that the exchange rate between the U.S. dollar and the Mexican peso is 1 peso = $0.11. If the U.S. dollar price per Mexican peso changes to 1 peso =$0.10, the peso is said to have __________ and the dollar to have __________.
U.S. $ Equivalent Foreign Currency per U.S. $
Monday Tuesday Monday Tuesday
Mexico (peso) 0.095 0.098 10.53 10.20
Japan (yen) 0.0085 0.0089 117.65 112.36
Thailand (baht) 0.024 0.020 41.44 50.00
Refer to Exhibit 35-5. Based on the information provided in this table, between Monday and Tuesday, the U.S. dollar ____________ against the Japanese yen and the yen _____________ against the U.S. dollar.
If it takes 118 Japanese yen to buy one dollar, then how many dollars does it take to buy one euro?
There is not enough information to answer the question.
U.S. imports are considered:
a credit or plus item in the U.S. balance of payments.
a credit or minus item in the U.S. balance of payments.
a debit or plus item in the U.S. balance of payments.
a debit or minus item in the U.S. balance of payments.
At any given moment there is one exchange rate:
for all the world's currencies.
for currencies in the free world.
between every pair of currencies.
established by the Federal Reserve System.
If the dollar depreciates relative to other currencies, which of the following is true?
It takes more of the other currency to buy a dollar.
It takes less of the other currency to buy a dollar.
There is no change in the amount of the currency needed to buy a dollar.
Not enough information to determine.
Which of the following is a credit in the U.S. current account?
A U.S. consumer buys a TV made in Malaysia.
Singapore Airlines buys a jumbo jet made in the United States.
British investors purchase U.S. government bonds.
An American citizen flies to Lithuania on the Lithuanian Airlines.
Which of the following would be a debit in the U.S. balance of payments?
the purchase of a Japanese car by an American
the purchase of air service from a U.S. airline by a Japanese traveler
the purchase of U.S. grain by a Japanese bakery