Quizific | U Balance Quiz

An unsterilized intervention in which the domestic currency is sold to purchase foreign assets results in an expected _ of the domestic currency that shifts the R F schedule to the _

depreciation; right.

appreciation; right

depreciation; left.

appreciation; left.

An expected appreciation of the domestic currency that shifts the R F schedule to the left is caused by

a sterilized intervention in which the domestic currency is sold to purchase foreign assets

a sterilized intervention in which the domestic currency is purchased by selling foreign assets.

an unsterilized intervention in which the domestic currency is sold to purchase foreign assets

an unsterilized intervention in which the domestic currency is purchased by selling foreign assets.

Because sterilized interventions mean offsetting open market operations, there is no impact on the monetary base and the money supply, and therefore a sterilized intervention

causes the exchange rate to overshoot in the short run

causes the exchange rate to undershoot in the short run.

causes the exchange rate to depreciate in the short run, but has no effect on the exchange rate in the long run.

has no effect on the exchange rate.

Because sterilized interventions mean offsetting open market operations

there is no impact on the monetary base.

there is no impact on the money supply

there is no effect on the exchange rate.

all of the above occur.

In the balance of payments bookkeeping system, payments from foreigners to Americans are entered in the

“Receipts” column with a plus (+) sign to reflect that they are credits

“Receipts” column with a minus (-) sign to reflect that they are debits.

“Payments” column with a minus (-) sign to reflect that they are debits.

“Payments” column with a plus (+) sign to reflect that they are credits.

Which of the following appear as credits in the U.S. balance of payments?

Capital outflows

Foreign aid

Merchandise exports

All of the above

Which of the following appear as debits in the U.S. balance of payments?

Capital inflows

Merchandise and service exports

Foreign aid

All of the above

In the balance of payments accounting system, the sale of Compaq computers abroad are entered in the _ column with a _ sign.

receipts; negative

receipts; positive

payments; negative

payments; positive

The difference between merchandise exports and imports is called the

current account balance

capital account balance.

official reserve transactions balance

trade balance.

An examination of the U.S. balance of payments indicates that the current account balance can

show a surplus only if the trade balance shows a surplus

show a deficit only if the trade balance shows a deficit

show a deficit even if the trade balance shows a surplus.

only (A) and (B) of the above.

U Balance Quiz

An unsterilized intervention in which the domestic currency is sold to purchase foreign assets results in an expected _____ of the domestic currency that shifts the R F schedule to the _____