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Education › Economics › Macroeconomics › Exchange Rate And Macroeconomic Impact

Exchange Rate and Macroeconomic Impact Quiz

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| By Thames

T

Thames

Community Contributor

Quizzes Created: 7229 | Total Attempts: 9,524,689

| Questions: 8 | Updated: Nov 12, 2025

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1. What is the primary function of an exchange rate?

To determine the value of a currency in relation to another

To set interest rates

To control inflation

To regulate trade

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About This Quiz

Exchange Rate And Macroeconomic Impact Quiz - Quiz

2. What's your name?

We’ll put your name on your report, certificate, and leaderboard.

2. Which of the following factors can influence exchange rates?

Interest rates

Inflation rates

Political stability

All of the above

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3. A strong currency typically leads to which of the following?

Increased exports

Decreased imports

Decreased exports

Increased inflation

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4. What is the term for a currency that is allowed to fluctuate in value against others?

Fixed exchange rate

Floating exchange rate

Pegged exchange rate

Managed float

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5. Which economic theory suggests that exchange rates are determined by the relative prices of goods?

Purchasing Power Parity

Interest Rate Parity

Balance of Payments

Monetary Policy

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6. What impact does a depreciating currency have on imports?

Imports become cheaper

Imports become more expensive

No impact on imports

Imports increase

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7. Which of the following is a potential consequence of a high exchange rate?

Increased foreign investment

Higher unemployment in export sectors

Lower inflation

Increased tourism

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8. What is the effect of a strong domestic currency on foreign debt?

It becomes cheaper to pay off

It becomes more expensive to pay off

No effect on foreign debt

It eliminates foreign debt

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All (8)
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Answered ()

What is the primary function of an exchange rate?

Which of the following factors can influence exchange rates?

A strong currency typically leads to which of the following?

What is the term for a currency that is allowed to fluctuate in value...

Which economic theory suggests that exchange rates are determined by...

What impact does a depreciating currency have on imports?

Which of the following is a potential consequence of a high exchange...

What is the effect of a strong domestic currency on foreign debt?

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