Exercise One Questions 1. Fill in the blank: With regard to international trade,

Question

Exercise One Questions 1. Fill in the blank: With regard to international trade, when a nation's currency is devalued there will likely be an increase in the country's 2. When a currency falls in value relative to other currencies it is said to: a. depreciate b. levelize c. appreciate d. none of these 3. When a nation's central bank enters the foreign exchange market to move its currency up or down it is called: a. foreign exchange intervention b. insider trading c. currency devaluation d. none of these

Explanation / Answer

1.

exports

as exports become cheaper in other currency values.

2.

depreciate

as value of currency declines

3.

foreign exchange intervention

the above all are the answers

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