The Economics of Money, Banking and Financial Markets 13th Global Edition Test bank

Answer:  B
Question Status:  Previous Edition
AACSB:  Diverse and Multicultural Work Environments
 

 
11) Everything else held constant, a decrease in the value of the dollar relative to all foreign currencies means that the price of foreign goods purchased by Americans
A) increases
B) decreases.
C) remains unchanged.
D) either increases, decreases, or remains unchanged.
Answer:  A
Question Status:  Previous Edition
AACSB:  Diverse and Multicultural Work Environments
 
12) American farmers who sell beef to Europe benefit most from
A) a decrease in the dollar price of euros.
B) an increase in the dollar price of euros.
C) a constant dollar price for euros.
D) a European ban on imports of American beef.
Answer:  B
Question Status:  Previous Edition
AACSB:  Diverse and Multicultural Work Environments
 
13) If the price of a euro (the European currency) increases from $1.00 to $1.10, then, everything else held constant
A) a European vacation becomes less expensive.
B) a European vacation becomes more expensive.
C) the cost of a European vacation is not affected.
D) foreign travel becomes impossible.
Answer:  B
Question Status:  Previous Edition
AACSB:  Application of Knowledge
 
14) Everything else held constant, Americans who love French wine benefit most from
A) a decrease in the dollar price of euros.
B) an increase in the dollar price of euros.
C) a constant dollar price for euros.
D) a ban on imports from Europe.
Answer:  A
Question Status:  Previous Edition
AACSB:  Application of Knowledge
 
15) From 2002 to 2011, the dollar depreciated substantially against other currencies. This drop in value most likely benefitted
A) European citizens traveling in the U.S.
B) U.S. citizens traveling in Europe.
C) U.S. manufacturers importing parts from abroad.
D) U.S. citizens purchasing foreign-made automobiles.
Answer:  A
Question Status:  Previous Edition
AACSB:  Application of Knowledge
 
16) During the 1980-1985, 1995-2002, 2011-2020 periods, the dollar strengthened in value against other currencies. Who was helped and who was hurt by this strong dollar?
Answer:  American consumers benefitted because imports were cheaper and consumers could purchase more. American businesses and workers in those businesses were hurt as domestic and foreign sales of American products fell.
Question Status:  Revised
AACSB:  Reflective Thinking
 
1.5   Money, Banking, and Financial Markets and Your Career
 
1) Students studying money, banking, and financial markets will learn
A) critical thinking skills that will be useful in all careers.
B) how to time the market.
C) stock market tips.
D) nothing of practical value.
Answer:  A
Question Status:  Previous Edition
AACSB:  Application of Knowledge
 
1.6   How We Will Study Money, Banking, and Financial Markets
 
1) The basic concepts used in the analytic framework of this text include all of the following EXCEPT
A) the not-for-profit nature of most financial institutions.
B) a basic supply and demand analysis to explain the behavior of financial markets.
C) an approach to financial structure based on transaction costs and asymmetric information.
D) the concept of equilibrium.
Answer:  A
Question Status:  Previous Edition
AACSB:  Application of Knowledge
 
2) Using a unified analytic framework to present the information in the text keeps the knowledge
A) focused on theories that have little to do with actual behavior.
B) theoretical and uninteresting.
C) abstract and not applicable to real life.
D) from becoming obsolete.
Answer:  D
Question Status:  Previous Edition
AACSB:  Application of Knowledge
 

 
1.7   Appendix: Defining Aggregate Output, Income, the Price Level, and the Inflation Rate
 
1) The most comprehensive measure of aggregate output is
A) gross domestic product.
B) net national product.
C) the stock value of the industrial 500.
D) national income.
Answer:  A
Question Status:  Previous Edition
AACSB:  Application of Knowledge
 
2) The gross domestic product is the
A) the value of all wealth in an economy.
B) the value of all goods and services sold to other nations in a year.
C) the market value of all final goods and services produced in an economy in a year.
D) the market value of all intermediate goods and services produced in an economy in a year.