Question :
71) Refer to Figure 35-1. A rise in the exchange : 1384546
71) Refer to Figure 35-1. A rise in the exchange rate (moving up the vertical axis) indicates
A) that fewer dollars are needed to purchase one euro.
B) that more euros are required to purchase one Canadian dollar.
C) an appreciation of the Canadian dollar.
D) a depreciation of the Canadian dollar.
E) no effect on the value of the currency.
72) Refer to Figure 35-1. A fall in the exchange rate (moving down the vertical axis) indicates
A) that more dollars are needed to purchase one euro.
B) that fewer euros are required to purchase one Canadian dollar.
C) an appreciation of the Canadian dollar.
D) a depreciation of the Canadian dollar.
E) no effect on the value of the currency.
73) Refer to Figure 35-1. A fall in the exchange rate (moving down the vertical axis) indicates
A) a depreciation of the Canadian dollar.
B) that more dollars are needed to purchase one euro.
C) that fewer dollars are needed to purchase one euro
D) that fewer euros are required to purchase one Canadian dollar.
E) no effect on the value of the currency.
74) Refer to Figure 35-2. If the exchange rate is e1, there is
A) an excess demand for foreign exchange.
B) pressure for the Canadian dollar to depreciate.
C) pressure for the exchange rate to rise.
D) an excess supply of foreign exchange.
E) a surplus of Canadian dollars.
75) Refer to Figure 35-2. If the exchange rate is e2, there is
A) an excess supply of foreign exchange.
B) pressure for the Canadian dollar to appreciate.
C) pressure for the exchange rate to fall.
D) a shortage of Canadian dollars.
E) an excess demand for foreign exchange.
76) Refer to Figure 35-2. If the exchange rate is e1, there is
A) a shortage of foreign exchange.
B) a surplus of Canadian dollars.
C) pressure on the Canadian dollar to depreciate.
D) pressure on the exchange rate to rise.
E) a shortage of Canadian dollars.
77) Refer to Figure 35-2. If the exchange rate is e2, there is
A) a surplus of foreign exchange.
B) a surplus of Canadian dollars.
C) pressure on the Canadian dollar to appreciate.
D) pressure on the exchange rate to fall.
E) a shortage of Canadian dollars.
78) Refer to Figure 35-3. An increase in demand or decrease in the supply of foreign exchange will
A) encourage Canadians to buy more European goods.
B) encourage Europeans to buy fewer Canadian goods.
C) cause the Canadian dollar to appreciate.
D) cause the Canadian dollar to depreciate.
E) have no effect on the exchange rate.
79) Refer to Figure 35-3. An increase in demand for foreign exchange OR a decrease in the supply of foreign exchange may be due to
A) foreign inflation in excess of domestic inflation.
B) domestic inflation in excess of foreign inflation.
C) equal rates of inflation.
D) increased preference for Canadian goods.
E) more Europeans travelling to Canada.
80) Countries can engage in trade with each other only if
A) there are international trading agreements in place.
B) currencies of the trading nations can be exchanged.
C) the countries engaging in trade officially establish an agreed upon exchange rate.
D) the trade is bilateral.
E) trading nations share the same currency.
