Question : 11) If the exchange rate changes from 1.00 euro per : 1240706

11) If the exchange rate changes from 1.00 euro per dollar to 1.10 euros per dollar, the euro has

A) depreciated against the euro.

B) appreciated against the euro.

C) fallen inversely in value.

D) appreciated against the dollar.

E) depreciated against the dollar.

12) If the exchange rate changes from 1.10 euros per dollar to 1.00 euro per dollar, the dollar has

A) depreciated against the euro.

B) appreciated against the euro.

C) fallen inversely in value.

D) appreciated against the dollar.

E) depreciated against the dollar.

13) When the U.S. dollar rises in value relative to the Mexican peso, the dollar has ________, and when the dollar falls in value, it has ________.

A) appreciated; depreciated

B) grown; shrunken

C) depreciated; appreciated

D) been bullish; been bearish

E) grown; shrunk

14) If the dollar falls from 1.25 euros to 1.00 euro, then the dollar has ________ and the euro has ________.

A) appreciated; appreciated

B) appreciated; depreciated

C) depreciated; appreciated

D) depreciated; depreciated

E) shrunk; grown

15) When the exchange rate between the U.S. dollar and the euro changes from 1.07 euros per dollar to 0.93 euros per dollar, then the

A) euro has depreciated against the dollar.

B) U.S. dollar has depreciated against the euro.

C) U.S. dollar has appreciated against the euro.

D) euro has depreciated against the euro.

E) U.S. dollar has depreciated against the dollar.

16) When the exchange rate between the U.S. dollar and the euro changes from 1.00 euro per dollar to 1.30 euros per dollar, then the

A) euro has appreciated against the dollar.

B) U.S. dollar has depreciated against the euro.

C) U.S. dollar has appreciated against the euro.

D) euro has depreciated against the euro.

E) U.S. dollar has depreciated against the dollar.

17) When a currency depreciates, its value has

A) remained constant against that of another currency.

B) fallen against another currency.

C) risen against another currency.

D) fluctuated around a particular value.

E) been fixed against the value of another country.

18) Which of the following is a factor in determining the demand for the dollar on the foreign exchange market?

i.the exchange rate

ii.interest rates in the United States and other countries

iii.the expected future exchange rate

A) i only

B) ii only

C) iii only

D) i and ii

E) i, ii, and iii

19) When the United States exports goods and services to France, there is an increase in the

A) supply of dollars.

B) supply of French francs.

C) demand for dollars.

D) U.S. capital account balance.

E) U.S. official settlements account balance.

20) If the exchange rate rises, the quantity of dollars demanded

A) increases and there is movement down along the demand curve for dollars.

B) does not change.

C) decreases and there is movement up along the demand curve for dollars.

D) decreases and there is movement down along the demand curve for dollars.

E) increases and there is movement up along the demand curve for dollars.