11th Grade Exchange Rates Quizzes, Questions & Answers

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This Econ 3229 ch 19 quiz assesses understanding of international economics, focusing on exchange rates and monetary policy. It evaluates knowledge on capital flow, inflation impact on currency, and the effects of international...

Questions: 22 | Attempts: 277 | Last updated: Mar 19, 2025

Sample Question 1
1. If capital flows freely between countries and a country has a fixed exchange rate, one thing you know is that the country:

Exports more than it imports

Must have ample gold reserves

Cannot have a domestic monetary policy

Must be running large trade deficits

Sample Question 2
2. If the inflation rate in country A is 3.5% and the inflation rate in country B is 3.0%, we should expect the percentage change in the number of units of country A's currency per unit of country B's currency to be:

+0.5%

-0.5%

+ 16.7%

+6.5%

Sample Question 3
3. If country A wants to fix its exchange rate with country B, then:

Country A's inflation rate will have to match country B's

Country A's monetary policy must be conducted so the inflation rate in country A matches the inflation rate in country B

Country A's monetary policy will not be able to be used to address domestic issues

All of the answers given are correct

11th Grade Exchange Rates Quizzes, Questions & Answers

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