If British residents want more French francs to purchase more French cloths other things equal, then the equilibrium value of the pound against the French franc will ?

Related Mcqs:

1. If the exchange rate between Swiss francs and British pounds is 5 francs per pound, then the number of pounds that can be obtained for 200 francs equals ?

   A. 20 pounds
   B. 40 pounds
   C. 60 pounds
   D. 80 pounds

2. Given the foreign currency market for the Swiss franc, the supply of franc slopes upward, because as the dollar price of the franc rises ?

   A. America’s demand for Swiss merchandise rises
   B. America’s demand for Swiss merchandise falls
   C. Switzerland’s demand for American merchandise rises
   D. Switzerland’s demand for American merchandise falls

3. Suppose that a Swiss television set that costs 400 francs in Switzerland cost $200 in the United States. The exchange rate between the franc and the dollar is ?

   A. 2 francs per dollar
   B. 1 franc per dollar
   C. $2 per franc
   D. $3 per franc

4. If the bank is selling francs for $0.45, then what is the implied franc price of the dollar ?

   A. 2.0
   B. 1.999
   C. 2.323
   D. 2.222

5. When the $/£ exchange rate rises the pound _____ and when the $/£ rates falls the pound ________?

   A. depreciates, appreciates
   B. revalues, devalues
   C. appreciates, depreciates
   D. becomes more expensive becomes cheaper

6. Suppose, due to political instability, Russians suddenly choose to purchase UK assets as opposed to Russian assets Which of the following statements is true regarding the value of the pound and UK net exports ?

   A. The pound appreciates, and UK net exports rise
   B. The pound appreciates, and UK net exports fall
   C. The pound depreciates, and UK net exports rise
   D. The pound depreciates, and UK net exports fall

7. What is called the excess of purchase price over fair market value of net assets that are acquired under the purchase method of accounting ?

   A. Bonus
   B. Up level
   C. Goodwill
   D. Upgradation

8. If currency dealers expect the value of the pound to fall, the exchange value will tend to ?

   A. depreciate
   B. not be affected
   C. fluctuate more than it would do therwise
   D. appreciate

9. Suppose Canada and Switzerland were the only two countries in the world There exists an excess supply of Swiss francs on the foreign exchange market This suggests that ?

   A. the Canadian current account balance is in surplus
   B. the Swiss current account balance is in deficit
   C. the Canadian current account balance is in equilibrium
   D. the Swiss current account balance is in equilibrium

10. If I purchase a stereo from South Korea, I obtain the stereo and South Korea obtains the dollars But if I purchase a stereo produced in the Pakistan I obtain the stereo and the rupees remain in Pakistan, This line of reasoning is ?

    A. valid for stereos, but nor for most products imported by Pakistan
    B. valid for most products imported by Pakistan but not for stereos
    C. deceiving since Koreans eventually spend the dollars on Pakistani goods
    D. deceiving since the dollars spent on a stereo built in the Pakistan eventually wind up overseas