4. USAEO International and Development
Exchange Rates — Quiz
Test your understanding of exchange rates with 5 practice questions.
Practice Questions
Question 1
What is an exchange rate?
Question 2
If the US dollar appreciates relative to the euro, what is a likely effect on US exports to Europe?
Question 3
Suppose the initial exchange rate is $1 = 0.9€ and it changes to $1 = 1.0€. What has happened to the US dollar?
Question 4
What is the likely impact of a depreciating domestic currency on a country's imports?
Question 5
If the exchange rate is $1 = 110 yen, and a Japanese product costs 11,000 yen, how much does it cost in US dollars?