Foreign exchange and etc help please!?

[nickson]

1. If nation used foreign exchange controls to eliminate a balance of payments deficit, it would
A. Increase the domestic price level
B. Appreciate the value of its currency
C. Limit the dollar value of its imports to the dollar value of its exports
D. Depreciate the value of its currency

2. If an American importer can purchase 20,000 british pounds for $40,000, the exchange rate for the pound would be?
A. $0.20
B. $0.40
C. $2.00
D. $4.00

3. Which of the following would be hurt by the imposition of a tariff?
A. Domestic consumers
B. Foreign producers
C. Domestic exports industries
D. All of the above

4. A tariff is:
A. A government payment to domestic producers to enable them to compete more effectively in international trade
B. An excise tax on imports
C. A law which sets an absolute numerical limit on imports
D. Any limitation placed on the importation of the products

5. Which of the following might help to explain why politicians have been willing to pass laws which limit free trade?
A. Special interest group pressure
B. Political logrolling
C. Both correct
D. Neither correct

6. Which of the following were advantages of the gold standard
A. It was automatic
B. It elminiated the need for domestic economic adjustments (inflation and recession)
C. Both correct
D. Neither correct

7. Which of the following was not a requirement of the international gold standard:
A. All nations had to define their currencies in terms of a set amount of gold
B. All nations had to allow free importation and exportation of gold
C. All gold had to be monetized
D. A nation had to be willing to accept very wide fluctuations in its exchange rate

8. Under a system of freely floating exchange rates, if the united states decrease its importation of Mexican goods (and Mexican importation of goods from the united states was unchanged):
A. The dollar price of pesos would increase
B. The peso price of dollars would increase
C. Pesos would be rationed in the united states
D. Nothing would happen to dollar price of pesos or to the peso price of dollars

9. An increase in the dollar price of pounds will
A. Increase the pound price of dollars
B. Decrease the pound price of dollars
C. Leave the pound price of dollars unchanged
D. Eliminate all trade between the united states and Britain

10. If a nation increased the value of its currency relative to another currency it is referred to as
A. Appreciation
B. Depreciation
C. Revaluation
D. Devaluation


My answers:
1. D
2. C
3. D
4. B
5. C
6. A
7. D
8. B
9. B
10. A

[jolie95]

1.A, capital control is a measure to avoid the effects on exchange rate.
2.C
3.A
4.B
5.A
6.B
7.D
8.B
9.B
10A