Show:
Balance of Payments
Flexible Exchange Rates
Fixed Exchange Rates
Trade Deficits
100
Balance of goods is the difference between?
What is a countries exported and imported goods.
100
What is a flexible exchange rate
What is a country's decision to allow its currency value to change freely.
100
Another word for fixed is?
What is constant.
100
When do trade deficits happen?
What is when imports are greater than exports.
200
Capital account measures?
What is debt forgiveness.
200
The opposite of appreciation.
What is depreciation.
200
The example of a fixed exchanged rate from the powerpoint?
What is two US dollars to one British pound.
200
What caused decreased imports beginning in 2006?
What is the recession.
300
Financial account summarizes....
What is international asset transactions
300
Rationing is
What is artificial restriction of demand.
300
Who makes up for a change in the inflation?
What is the government.
300
In the long term, trade deficits will cause?
What is greatly reduced consumption.
400
Official reserves consist of stocks of
What is gold.
400
Why is rationing done?
What is to keep the price below equilibrium.
400
Many countries encourage
What is exports
400
Who is our greatest trade deficit with?
What is China.
500
What is it called when the balance on the current account and the balance on the capital/financial account does not equal 0.
What is a deficit.
500
What are the four major objections to exchange controls?
What is Distorted trade, favoritism, restricted choice, and black markets.
500
Do fixed exchange rates change?
What is no.
500
What is the benefit of foreign lending?
What is increase of US capital stock.