Question : 11) When the value of the dollar changes from £0.75 : 1373809

 

11) When the value of the dollar changes from £0.75 to £0.5, then the British pound has ________ and the U.S. dollar has ________.

A) appreciated; appreciated

B) depreciated; appreciated

C) appreciated; depreciated

D) depreciated; depreciated

 

12) When the exchange rate for the Mexican peso changes from 9 pesos to the U.S. dollar to 10 pesos to the U.S. dollar, then the Mexican peso has ________ and the U.S. dollar has ________.

A) appreciated; appreciated

B) depreciated; appreciated

C) appreciated; depreciated

D) depreciated; depreciated

 

13) When the exchange rate for the Mexican peso changes from 10 pesos to the U.S dollar to 9 pesos to the U.S. dollar, then the Mexican peso has ________ and the U.S. dollar has ________.

A) appreciated; appreciated

B) depreciated; appreciated

C) appreciated; depreciated

D) depreciated; depreciated

 

14) On January 25, 2009, one U.S. dollar traded on the foreign exchange market for about 0.75 euros. Therefore, one euro would have purchased about ________ U.S. dollars.

A) 0.75

B) 1.00

C) 1.33

D) 1.75

 

15) On January 25, 2009, one U.S. dollar traded on the foreign exchange market for about 49.0 Indian rupees. Thus, one Indian rupee would have purchased about ________ U.S. dollars.

A) 0.02

B) 1.20

C) 7.00

D) 49.0

16) On January 25, 2009, one U.S. dollar traded on the foreign exchange market for about 1.15 Swiss francs. Therefore, one Swiss franc would have purchased about ________ U.S. dollars.

A) 0.30

B) 0.87

C) 1.15

D) 3.10

 

17) On January 25, 2009, one U.S. dollar traded on the foreign exchange market for about 3.33 Romanian new lei. Therefore, one Romanian new lei would have purchased about ________ U.S. dollars.

A) 0.30

B) 1.86

C) 2.86

D) 3.33

 

18) If the U.S. dollar appreciates from 1.25 Swiss franc per U.S. dollar to 1.5 francs per dollar, then the franc depreciates from ________ U.S. dollars per franc to ________ U.S. dollars per franc.

A) 0.80; 0.67

B) 0.67; 0.80

C) 0.50; 0.33

D) 0.33; 0.50

 

19) If the British pound appreciates from $0.50 per pound to $0.75 per pound, the U.S. dollar depreciates from ________ per dollar to ________ per dollar.

A) £2; £2.5

B) £2; £1.33

C) £2; £1.5

D) £2; £1.25

 

20) If the Japanese yen appreciates from $0.01 per yen to $0.02 per yen, the U.S. dollar depreciates from ________ per dollar to ________ per dollar.

A) 100¥; 50¥

B) 10¥; 5¥

C) 5¥; 10¥

D) 50¥; 100¥

 

21) If the dollar appreciates from 1.5 Brazilian reals per dollar to 2.0 reals per dollar, the real depreciates from ________ per real to ________ per real.

A) $0.67; $0.50

B) $0.33; $0.50

C) $0.75; $0.50

D) $0.50; $0.67

E) $0.50; $0.75

 

22) When the exchange rate for the British pound changes from $1.80 per pound to $1.60 per pound, then, holding everything else constant, the pound has ________ and ________ expensive.

A) appreciated; British cars sold in the United States become more

B) appreciated; British cars sold in the United States become less

C) depreciated; American wheat sold in Britain becomes more

D) depreciated; American wheat sold in Britain becomes less

 

23) If the dollar depreciates relative to the Swiss franc

A) Swiss chocolate will become cheaper in the United States.

B) American computers will become more expensive in Switzerland.

C) Swiss chocolate will become more expensive in the United States.

D) Swiss computers will become cheaper in the United States.

 

24) Everything else held constant, when a country’s currency appreciates, the country’s goods abroad become ________ expensive and foreign goods in that country become ________ expensive.

A) more; less

B) more; more

C) less; less

D) less; more

 

25) Everything else held constant, when a country’s currency depreciates, its goods abroad become ________ expensive while foreign goods in that country become ________ expensive.

A) more; less

B) more; more

C) less; less

D) less; more

 

 

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