Currencies and Exchange Rates — Quiz

Question 1

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

Revolt · Accepted Answer

supply and demand

Question 2

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

Revolt · Accepted Answer

buy the most euros for US dollars.

Question 3

Which of these factors would strengthen demand for a nation’s currency on the international market? Choose four correct answers.

Revolt · Accepted Answer

low unemployment rates; high gross domestic product; stability of government; victory in war

Question 4

If investors can earn 10 percent interest in an account in Mexico but just 3 percent in the United States, those investors will most likely

Revolt · Accepted Answer

want to invest in Mexico, which will cause the peso to appreciate.

Question 5

What is an example of a country that makes use of another nation’s currency?

Revolt · Accepted Answer

Panama

Question 6

It’s important for countries to exchange currencies so that goods from other nations can be

Revolt · Accepted Answer

traded.

Question 7

Which statements accurately describe a country’s currency? Choose three correct answers.

Revolt · Accepted Answer

The currency has a value that can change.; The currency has denominations.; The currency is easily divisible.

Currencies and Exchange Rates — Quiz Answers