Question

What is the term for the record of all foreign purchases or assets in the domestic economy and domestic purchases of assets abroad? a. the current account b. the net secondary income c. the balance of trade d. the capital account

Which of the following would cause a decrease in the exchange rate of the Canadian dollar? a. a decrease in the amount of foreign debt purchased by Canadian citizens b. an increase in Canadian imports c. an increase in demand by foreigners to buy Canadian government securities d. an increase in Canadian exports

What kind of relationship exists between the quantity of money demanded and the interest rate? a. an inverse relationship b. a positive relationship c. a constant relationship d. a fixed relationship

A banking transaction creates new excess reserves in the banking system. What will be the impact on the amount of loans made by banks and on the money supply? a. an increase in the amount of loans made by banks and a decrease in the supply of money b. an increase in the amount of loans made by banks and an increase in the supply of money c. a decrease in the amount of loans made by banks and a decrease in the supply of money d. a decrease in the amount of loans made by banks and an increase in the supply of money

Answer 1

a) "C"

Its called the balance of trade.

b) "B"

An increase in the canadian imports willl reduce the exchange rate of the Canadian dollar.

c) "A"

there is an inverse relationship.

d) "B"

There will be an increase in the money supply and amount of loan that they can make.