Author Question: When the exchange rate moves from 1 = CAD1.5 to 1 = CAD1.66, it implies: a. the U.S. dollar has ... (Read 32 times)

bcretired · **on:** Jun 30, 2018

When the exchange rate moves from 1 = CAD1.5 to 1 = CAD1.66, it implies:
a. the U.S. dollar has depreciated in relation to the Canadian dollar.
b. U.S. imports of Canadian goods will rise.
c. the dollar price of the Canadian dollar has risen.
d. the Canadian dollar has appreciated in relation to the U.S. dollar.
e. Canadian imports of U.S. goods will rise.

Question 2

Which of the following would be a credit in the U.S. balance of payments?
a. the purchase of a German car by an American
b. the purchase of insurance from Lloyds of London by a U.S. resident
c. a trip to Japan by an American student
d. a short-term loan extended to a South American country by the United States government