Why did the value of the Indian rupee decline against that of the US dollar after the US Fed had announced that it would begin to wind down its economic stimulus program? A. Increase in US interest rate B. India's dependence on US capital C. US's money supply expansion D. India's restriction on foreign capital

Why does purchasing-power parity theory NOT hold at all times? Select one: a. because prices are different across countries b. because wages are higher in some countries and lower in others c. because some goods and services cannot be traded d. because countries use different currencies

If Canada is said to have a balance of payments deficit,this means thatOA.the Bank of Canada decreased its reserves of foreign exchangeB.theBank of Canada purchased some ofthe gold that it uses to back the Canadian dollarc.theBank of Canada used Canadian dollars to buy foreign exchange on the foreign exchange markets. O D. the Bank of Canada issued foreign exchange

Which of the following will most likely cause a nation's currency to appreciate on the foreign exchange market? a. A decrease in domestic interest rates O b. An increase in foreign interest rates c. Stable domestic prices while the nation's trading partners are experiencing 10 percent inflation O d. Domestic inflation of 10 percent while the nation's trading partners are experiencing stable prices

A. Canada produces natural resources (coal, natural gas, and others), the demand for which has increased rapidly as China and other emerging economies expand. i. Explain how growth in the demand for Canada's natural resources would affect the demand for Canadian dollars in the foreign exchange market. Explain how the supply of Canadian dollars would change. ii. iii. Explain how the value of the Canadian dollar would change. iv. Illustrate your answer with a graphical analysis. 1

If U.S. securities pay 6 percent interest, and if Great Britain’s securities pay 8 percent interest, then   a. pounds depreciate relative to dollars.   b. pounds appreciate relative to dollars.   c. Great Britain’s imports will fall.   d. Great Britain’s exports will rise.

Due to the increase in the productivity of Omanis in the technology sector, the rate of exports of technological services has increased. How will this affect the value of the Omani Rial and the US dollar? a. Stronger rial and weaker dollar b. weaker rial and stronger dollar С. both currencies will increase in value d. the increase will be cancelled out by each other

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1. Will A Canadian forestry company selling on world markets have a higher or lower exchange rate for the Canadian dollar? Explain why. 2. Will a Canadian company that must import equipment from abroad will have a higher or lower exhange rate for Canadian dollar? Explain why. 3. Make a summary list of the causes and remedies for low levels of economic development.