Podcast
Questions and Answers
A country's current account deficit is primarily financed by which of the following mechanisms?
A country's current account deficit is primarily financed by which of the following mechanisms?
- Borrowing from domestic commercial banks and financial institutions. (correct)
- An increase in the country's holdings of foreign assets by domestic residents.
- A decrease in the country's official reserve assets held by the central bank.
- The country's central bank printing more domestic currency.
How is the real exchange rate calculated, given the nominal exchange rate, domestic price level, and foreign price level?
How is the real exchange rate calculated, given the nominal exchange rate, domestic price level, and foreign price level?
- Nominal exchange rate / (Domestic price level × Foreign price level)
- Nominal exchange rate × (Domestic price level / Foreign price level) (correct)
- (Nominal exchange rate + Domestic price level) / Foreign price level
- Nominal exchange rate × (Foreign price level / Domestic price level)
If a country's currency appreciates, what is the immediate impact on its trade balance, assuming all else is constant?
If a country's currency appreciates, what is the immediate impact on its trade balance, assuming all else is constant?
- The trade balance worsens as exports become more expensive and imports become cheaper. (correct)
- The trade balance improves as exports become cheaper and imports become more expensive.
- The trade balance improves due to increased foreign investment.
- There is no immediate impact on the trade balance.
Which scenario would most likely lead to a depreciation of a country's currency under a flexible exchange rate regime?
Which scenario would most likely lead to a depreciation of a country's currency under a flexible exchange rate regime?
How does a central bank typically intervene in the foreign exchange market to depreciate its currency?
How does a central bank typically intervene in the foreign exchange market to depreciate its currency?
What is the primary implication of the J-curve effect in international trade?
What is the primary implication of the J-curve effect in international trade?
How does the monetary policy trilemma constrain a country's macroeconomic policy options?
How does the monetary policy trilemma constrain a country's macroeconomic policy options?
What is the key difference between a currency devaluation and a currency depreciation?
What is the key difference between a currency devaluation and a currency depreciation?
What effect does purchasing power parity (PPP) predict on exchange rates in the long run?
What effect does purchasing power parity (PPP) predict on exchange rates in the long run?
Which of the following is NOT a typical motive for holding foreign currency reserves by a central bank?
Which of the following is NOT a typical motive for holding foreign currency reserves by a central bank?
Flashcards
Array
Array
A data structure where elements are arranged sequentially, each with an index, allowing direct access.
Graph
Graph
A data structure that organizes items in a non-linear way. Visualized as nodes connected by edges.
Tree
Tree
A data structure where elements are in a parent-child relationship. It has a root node and branches.
Stack
Stack
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Queue
Queue
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Hash Table
Hash Table
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Linear Search
Linear Search
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Binary Search
Binary Search
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Bubble Sort
Bubble Sort
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Quick Sort
Quick Sort
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