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Question : 19.3   Chapter Figures The figure above shows the demand curve for : 1228085

Economics

 

19.3   Chapter Figures

 

 

The figure above shows the demand curve for dollars in the foreign exchange market.

 

1) If the exchange rate rises as shown by the arrow, the price of American exports to foreigners will be ________, and foreign nations will demand ________ dollars in order to buy ________ American exports.

A) cheaper; more; more

B) higher; more; more

C) cheaper; fewer; fewer

D) cheaper; fewer; more

E) higher; fewer; fewer

2) Which of the following factors could lead to an upward movement along the demand curve as indicated by the arrow?

i.An increase in the U.S. interest rate

ii.A decrease in the U.S. interest rate

iii.An increase in the expected future U.S. exchange rate.

A) i only

B) ii only

C) i and iii

D) ii and iii

E) None of the factors could lead to the upward movement illustrated by the arrow.

 

 

The figure above shows demand curves for dollars in the foreign exchange market.

 

3) The demand curve shifts rightward from D0 to D1 when the U.S. interest rate ________ and foreign interest rates are unchanged. The demand curve shifts rightward from D0 to D1 when the expected future exchange rate ________.

A) rises; falls

B) falls; rises

C) rises; rises

D) falls; falls

E) None of the above answers are correct because the factors mentioned lead to movements along the demand curve and not to shifts of the demand curve.

 

4) Based on the figure above, which of the following factors could lead the demand curve to shift rightward from D0 to D1?

A) a rise in the U.S. exchange rate

B) a fall in the U.S. exchange rate

C) a rise in the U.S. interest rate

D) a fall in expected future U.S. exchange rate

E) a rise in foreign interest rates

 

5) Based on the figure above, which of the following factors could lead the demand curve to shift leftward from D0 to D2?

A) a rise in the U.S. exchange rate

B) a fall in the U.S. exchange rate

C) a rise in the U.S. interest rate

D) a rise in expected future U.S. exchange rate

E) a fall in foreign interest rates

 

6) Based on the figure above, which of the following factors could lead the demand curve to shift leftward from D0 to D2?

A) a rise in the U.S. exchange rate

B) a fall in the U.S. exchange rate

C) a rise in the U.S. interest rate

D) a fall in expected future U.S. exchange rate

E) a rise in foreign interest rates

 

The figure above shows the supply curve of dollars in the foreign exchange market.

 

7) If the exchange rate rises as shown by the arrow, the price of imports coming into the United States will be ________, Americans will supply ________ dollars in order to get the foreign exchange to purchase ________ imported goods.

A) lower; fewer; more

B) higher; more; more

C) lower; fewer; fewer

D) lower; more; more

E) higher; fewer; more

 

The figure above shows supply curves of dollars in the foreign exchange market.

 

8) The supply curve shifts rightward from S0 to S2 when the U.S. interest rate ________ and foreign interest rates are unchanged. The supply curve shifts rightward from S0 to S2 when the expected future exchange rate ________.

A) rises; rises

B) rises; falls

C) falls; rises

D) falls; falls

E) None of the above answers are correct because the factors mentioned lead to movements along the demand curve and not to shifts of the demand curve.

9) Based on the figure above, which of the following factors could lead the supply curve to shift rightward from S0 to S2?

A) a rise in the U.S. exchange rate

B) a fall in the U.S. exchange rate

C) a fall in the U.S. interest rate

D) a rise in expected future U.S. exchange rate

E) a fall in foreign interest rates

 

10) Based on the figure above, which of the following factors could lead the supply curve to shift leftward from S0 to S1?

A) a rise in the U.S. exchange rate

B) a fall in the U.S. exchange rate

C) a fall in the U.S. interest rate

D) a rise in expected future U.S. exchange rate

E) a rise in foreign interest rates

 

11) Based on the figure above, which of the following factors could lead the supply curve to shift leftward from S0 to S1?

A) a rise in the U.S. exchange rate

B) a fall in the U.S. exchange rate

C) a fall in the U.S. interest rate

D) a rise in expected future U.S. exchange rate

E) a fall in foreign interest rates

 

The figure above shows the market for foreign exchange in 2001 and 2009.

 

12) Which of the following could have lead to the shifts illustrated in the figure above?

i.The U.S. exchange rate was expected to depreciate between 2001 and 2009.

ii.The U.S. exchange rate was expected to appreciate between 2001 and 2009.

iii.The U.S. interest rate rose relative to interest rates in other countries between 2001 and 2009.

A) i only

B) ii only

C) iii only

D) i and iii

E) ii and iii

13) Which of the following could have lead to the shifts illustrated in the figure above?

i.The U.S. exchange rate was expected to depreciate between 2001 and 2009.

ii.The U.S. exchange rate was expected to appreciate between 2001 and 2009.

iii.The U.S. interest rate fell relative to interest rates in other countries between 2001 and 2009.

A) i only

B) ii only

C) iii only

D) i and iii

E) ii and iii

 

14) What would the Fed have done if it had tried to keep the exchange rate at its 2001 level?

A) buy dollars and sell euros

B) buy dollars and buy euros

C) sell dollars and buy euros

D) sell dollars and sell euros

E) None of the above are correct because the Fed cannot affect the exchange rate.

 

15) Suppose the Fed had tried to keep the exchange rate at its 2001 level. In that case the Fed would have ________ dollars and its foreign reserves would have ________.

A) bought; decreased

B) sold; decreased

C) bought; increased

D) sold; increased

E) None of the above are correct because the Fed cannot affect the exchange rate.

 

 

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July 1, 2023
    

 

 

91. Accompanying the bank statement was a debit memo for bank service charges.  On the bank reconciliation, the item is  
A. a deduction from the balance per company's records
B. an addition to the balance per bank statement
C. a deduction from the balance per bank statement
D. an addition to the balance per company's records

 

92. Accompanying the bank statement was a debit memo for bank service charges.  What entry is required in the company's accounts? 
A. debit Miscellaneous Administrative Expense; credit Cash
B. debit Cash; credit Other Income
C. debit Cash; credit Accounts Payable
D. debit Accounts Payable; credit Cash

 

93. A check drawn by a company in payment of a voucher for $965 was recorded in the journal as $695.  This item would be included in the bank reconciliation as a(n)  
A. deduction from the balance per the company's records
B. addition to the balance per the bank statement
C. deduction from the balance per the bank statement
D. addition to the balance per the company's records

 

94. A check drawn by a company in payment of a voucher for $965 was recorded in the journal as $695. What entry is required in the company's accounts? 
A. debit Accounts Payable; credit Cash
B. debit Cash; credit Accounts Receivable
C. debit Cash; credit Accounts Payable
D. debit Accounts Receivable; credit Cash

 

95. Receipts from cash sales of $3,200 were recorded incorrectly in the cash receipts journal as $2,300.  This item would be included on the bank reconciliation as a(n)  
A. deduction from the balance per company's records
B. addition to the balance per bank statement
C. deduction from the balance per bank statement
D. addition to the balance per company's records

 

96. Receipts from cash sales of $3,200 were recorded incorrectly in the cash receipts journal as $2,300.  What entry is required in the company's accounts? 
A. debit Sales; credit Cash
B. debit Cash; credit Accounts Receivable
C. debit Cash; credit Sales
D. debit Accounts Receivable; credit Cash

 

97. Accompanying the bank statement was a credit memo for a short-term note collected by the bank for the company.  This item is a(n)  
A. deduction from the balance per company's records
B. addition to the balance per bank statement
C. deduction from the balance per bank statement
D. addition to the balance per company's records

 

98. Accompanying the bank statement was a credit memo for a short-term note collected by the bank for the customer.  What entry is required in the company's accounts? 
A. debit Notes Receivable; credit Cash
B. debit Cash; credit Miscellaneous Income
C. debit Cash; credit Notes Receivable
D. debit Accounts Receivable; credit Cash

 

99. The amount of deposits in transit is included on the bank reconciliation as a(n)  
A. deduction from the balance per the company's books
B. deduction from the balance per bank statement
C. addition to the balance per bank statement
D. addition to the balance per company books

 

100. The amount of the outstanding checks is included on the bank reconciliation as a(n)  
A. deduction from the balance per company's records
B. addition to the balance per bank statement
C. deduction from the balance per bank statement
D. addition to the balance per company's records

 

 

default image
July 1, 2023
    

 

 

91. Accompanying the bank statement was a debit memo for bank service charges.  On the bank reconciliation, the item is  
A. a deduction from the balance per company's records
B. an addition to the balance per bank statement
C. a deduction from the balance per bank statement
D. an addition to the balance per company's records

 

92. Accompanying the bank statement was a debit memo for bank service charges.  What entry is required in the company's accounts? 
A. debit Miscellaneous Administrative Expense; credit Cash
B. debit Cash; credit Other Income
C. debit Cash; credit Accounts Payable
D. debit Accounts Payable; credit Cash

 

93. A check drawn by a company in payment of a voucher for $965 was recorded in the journal as $695.  This item would be included in the bank reconciliation as a(n)  
A. deduction from the balance per the company's records
B. addition to the balance per the bank statement
C. deduction from the balance per the bank statement
D. addition to the balance per the company's records

 

94. A check drawn by a company in payment of a voucher for $965 was recorded in the journal as $695. What entry is required in the company's accounts? 
A. debit Accounts Payable; credit Cash
B. debit Cash; credit Accounts Receivable
C. debit Cash; credit Accounts Payable
D. debit Accounts Receivable; credit Cash

 

95. Receipts from cash sales of $3,200 were recorded incorrectly in the cash receipts journal as $2,300.  This item would be included on the bank reconciliation as a(n)  
A. deduction from the balance per company's records
B. addition to the balance per bank statement
C. deduction from the balance per bank statement
D. addition to the balance per company's records

 

96. Receipts from cash sales of $3,200 were recorded incorrectly in the cash receipts journal as $2,300.  What entry is required in the company's accounts? 
A. debit Sales; credit Cash
B. debit Cash; credit Accounts Receivable
C. debit Cash; credit Sales
D. debit Accounts Receivable; credit Cash

 

97. Accompanying the bank statement was a credit memo for a short-term note collected by the bank for the company.  This item is a(n)  
A. deduction from the balance per company's records
B. addition to the balance per bank statement
C. deduction from the balance per bank statement
D. addition to the balance per company's records

 

98. Accompanying the bank statement was a credit memo for a short-term note collected by the bank for the customer.  What entry is required in the company's accounts? 
A. debit Notes Receivable; credit Cash
B. debit Cash; credit Miscellaneous Income
C. debit Cash; credit Notes Receivable
D. debit Accounts Receivable; credit Cash

 

99. The amount of deposits in transit is included on the bank reconciliation as a(n)  
A. deduction from the balance per the company's books
B. deduction from the balance per bank statement
C. addition to the balance per bank statement
D. addition to the balance per company books

 

100. The amount of the outstanding checks is included on the bank reconciliation as a(n)  
A. deduction from the balance per company's records
B. addition to the balance per bank statement
C. deduction from the balance per bank statement
D. addition to the balance per company's records

 

 

default image
July 1, 2023
    

 

 

91. Accompanying the bank statement was a debit memo for bank service charges.  On the bank reconciliation, the item is  
A. a deduction from the balance per company's records
B. an addition to the balance per bank statement
C. a deduction from the balance per bank statement
D. an addition to the balance per company's records

 

92. Accompanying the bank statement was a debit memo for bank service charges.  What entry is required in the company's accounts? 
A. debit Miscellaneous Administrative Expense; credit Cash
B. debit Cash; credit Other Income
C. debit Cash; credit Accounts Payable
D. debit Accounts Payable; credit Cash

 

93. A check drawn by a company in payment of a voucher for $965 was recorded in the journal as $695.  This item would be included in the bank reconciliation as a(n)  
A. deduction from the balance per the company's records
B. addition to the balance per the bank statement
C. deduction from the balance per the bank statement
D. addition to the balance per the company's records

 

94. A check drawn by a company in payment of a voucher for $965 was recorded in the journal as $695. What entry is required in the company's accounts? 
A. debit Accounts Payable; credit Cash
B. debit Cash; credit Accounts Receivable
C. debit Cash; credit Accounts Payable
D. debit Accounts Receivable; credit Cash

 

95. Receipts from cash sales of $3,200 were recorded incorrectly in the cash receipts journal as $2,300.  This item would be included on the bank reconciliation as a(n)  
A. deduction from the balance per company's records
B. addition to the balance per bank statement
C. deduction from the balance per bank statement
D. addition to the balance per company's records

 

96. Receipts from cash sales of $3,200 were recorded incorrectly in the cash receipts journal as $2,300.  What entry is required in the company's accounts? 
A. debit Sales; credit Cash
B. debit Cash; credit Accounts Receivable
C. debit Cash; credit Sales
D. debit Accounts Receivable; credit Cash

 

97. Accompanying the bank statement was a credit memo for a short-term note collected by the bank for the company.  This item is a(n)  
A. deduction from the balance per company's records
B. addition to the balance per bank statement
C. deduction from the balance per bank statement
D. addition to the balance per company's records

 

98. Accompanying the bank statement was a credit memo for a short-term note collected by the bank for the customer.  What entry is required in the company's accounts? 
A. debit Notes Receivable; credit Cash
B. debit Cash; credit Miscellaneous Income
C. debit Cash; credit Notes Receivable
D. debit Accounts Receivable; credit Cash

 

99. The amount of deposits in transit is included on the bank reconciliation as a(n)  
A. deduction from the balance per the company's books
B. deduction from the balance per bank statement
C. addition to the balance per bank statement
D. addition to the balance per company books

 

100. The amount of the outstanding checks is included on the bank reconciliation as a(n)  
A. deduction from the balance per company's records
B. addition to the balance per bank statement
C. deduction from the balance per bank statement
D. addition to the balance per company's records

 

 

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