Sec 31.2 MC The Prices for International Transactions Real and Nominal Exchange Rates

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1、1. Thenominalexchangerateisthe a. nominalinterestrateinonecountrydividedbythenominalinterestrateintheothercountry. b. theratioofaforeigncountry’sinterestratetothedomesticinterestrate. c. rateatwhichapersoncantradethecurrencyofonecountryforanother. d. therealexchangerateminustheinflationrate

2、.ANSWER:  cDIFFICULTY:  EasyREFERENCES:  ThePricesforInternationalTransactions:RealandNominalExchangeRatesLEARNING OBJECTIVES:  ECON.MANK.004-Analyzethedeterminantsofrealandnominalexchangerates.TOPICS:  InternationaltradeExchangeratesKEYWORDS:  BLOOM'S:KnowledgeCUSTOM ID:  001.31.2-MC-MANK0

3、82. Iftheexchangerateis.60Britishpounds=$1,abottleofalethatcosts3poundscosts a. $1.80. b. $4.80. c. $5. d. Noneoftheaboveiscorrect.ANSWER:  cDIFFICULTY:  EasyREFERENCES:  ThePricesforInternationalTransactions:RealandNominalExchangeRatesLEARNING OBJECTIVES:  ECON.MANK.036-Computethedomesticp

4、riceofagoodusinginternationalpricesandnominalexchangerates.TOPICS:  InternationaltradeExchangeratesKEYWORDS:  BLOOM'S:ApplicationCUSTOM ID:  002.31.2-MC-MANK083. Iftheexchangerateis5EgyptianpoundsperU.S.dollar,awatchthatcosts$25USdollarscosts a. 125Egyptianpounds b. 50Egyptianpounds c. 5Egy

5、ptianpounds d. Noneoftheaboveiscorrect.ANSWER:  aDIFFICULTY:  EasyREFERENCES:  ThePricesforInternationalTransactions:RealandNominalExchangeRatesLEARNING OBJECTIVES:  ECON.MANK.036-Computethedomesticpriceofagoodusinginternationalpricesandnominalexchangerates.TOPICS:  InternationaltradeExchan

6、geratesKEYWORDS:  BLOOM'S:ApplicationCUSTOM ID:  003.31.2-MC-MANK084. Iftheexchangerateis2BrazilianrealsperdollarandamealinRiocosts20reals,thenhowmanydollarsdoesittaketobuyamealinRio? a. 40andyourpurchasewillincreaseBrazil’snetexports.CopyrightCengageLearning.PoweredbyCognero.Page 27 b. 10a

7、ndyourpurchasewillincreaseBrazil’snetexports. c. 40andyourpurchasewilldecreaseBrazil’snetexports. d. 10andyourpurchasewilldecreaseBrazil’snetexports.ANSWER:  bDIFFICULTY:  ModerateREFERENCES:  ThePricesforInternationalTransactions:RealandNominalExchangeR