AnswersEAP-Virginia and US Government BProblem Solving in Social Studies

6.1 Currencies and Exchange Rates Answers

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1
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There would be no separation between one country’s economy and another’s if the entire world

A
shared the same currency.
B
chose paper currency over coins.
C
eliminated denominations for currency.
D
agreed to use only two types of currency.
2
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The chart below shows an exchange rate table.

Question illustration
A
less than a pound
B
more than a pound
C
exactly one pound
D
about eight pounds
3

Which of these factors would strengthen demand for a nation’s currency on the international market? Select all that apply.

A
high domestic inflation
B
stability of government
C
victory in war
D
high gross domestic product
E
defeat in war
F
low unemployment rates
4

The chart below shows an exchange rate table.

Question illustration
A
Japan's currency shows that it has the strongest economy of any country.
B
The value of each currency is shown in relation to the US dollar.
C
It would take six British pounds to purchase one US dollar.
D
Swiss francs are the strongest currency in Europe.
5

Who decides which currency each country in the world uses?

A
the United Nations
B
each individual country
C
the European Union
D
the United States
6

Read this news report about a planned devaluation of the bolivar, the currency of Venezuela.The president of Venezuela announced that the country would be devaluating the bolivar for the fifth time in nine years. The official rate is falling from 4.3 bolivars to the dollar, to 6.3, a 32% devaluation. By increasing the bolivar value of exports of oil to the US and other nations, the government hopes to alleviate a budget crisis caused by its increasing reliance on borrowing to meet spending obligations.In response to the announcement, the people of Venezuela lined up today to buy televisions, electronics, and airline tickets in order to protect themselves from projected price increases.

A
followed the law of supply and demand.
B
allowed the exchange rate to remain unchanged.
C
increased the number of bolivars needed to buy one dollar.
D
decreased the number of bolivars needed to buy one dollar.
7

A currency shared by several countries in Europe is the.

Answer not available
8

The graph below shows the value of the US dollar versus the Canadian dollar.

Question illustration
A
rising against the Canadian dollar.
B
falling against the Canadian dollar.
C
more than twice that of the Canadian dollar.
D
about half that of the Canadian dollar.
9

Which factor plays a role in establishing the value of a country’s currency?

A
the attractiveness of the currency design
B
the location of the country
C
supply and demand
D
distance between countries
10

The best time for Americans to import French cheese is when they can

A
exchange a combination of goods and US dollars for euros.
B
buy the most euros for US dollars.
C
buy the most US dollars for euros.
D
exchange US dollars for pesos and then for euros.

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6.1 Currencies and Exchange Rates Answers —…