Suppose a bottle of wine costs 20 euros in France and 25 dollars in the United States. If the exchange rate is .80 euros per dollar, what is the real exchange rate?
The real exchange rate = nominal exchange rate × Domestic Price/Foreign price = .80 euros per dollar 25 dollars/20 euros = 1.
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Answer the following statement true (T) or false (F)
Refer to Figure 14.1. Other things equal, if the U.S. dollar increases in value relative to other currencies, this is best represented as a movement from
A) point X to point Y. B) point X to point Z. C) point Y to point Z. D) point Y to point X.
Which of the following would be a liability to a bank?
a. cash in the vault b. a loan to a new business c. a checking account of a professor d. All of the above are correct.
The majority of union members in the United States belong to unions that are:
A. affiliated with the United Workers of America (UWA). B. affiliated with the AFL-CIO. C. independent unions that are not affiliated with the AFL-CIO. D. growing rapidly in membership.