ITR 312 International Finance Final F. Irem Doğan Name Surname: Multiple Choices (Each 3p) 1) An American buys a Japanese car, paying by writing a check on an account wit a bank in New York. How would this be accounted for in the balance of payments? A) current account, a Japanese good import B) current account, a US good import C) financial account, a U.S. asset import D) financial account, a U.S. asset export E) Only B and D 2) If the U.K. has lower money growth and lower output growth than the curo area. then the monetary approach to exchange rates says the value of the British pound should a) appreciate b) depreciate c) not change d) not enough information 3) Using the Uncovered Interest Parity (UIP) equation, what would happen to the spot rate for euros if the interest rate on U.S. dollar deposits rises ceteris paribus? A) the spot rate to purchase euros would rise (dollar depreciation) B) the spot rite to purchase curos would Eall (dollar appreciation). C) the spot rate to purchase euros would be unchanged. D) the U.S. Federal Reserve would have to raise U.S. short-term interest rates 4) Which of the following suggests Poland should NOT join the European Monetary Union? a) Poland trades a lot with EMU countries. b) Poland has recessions at different times from France and Germany. c) Many Poles work in EMU countries d) Poland receives financial assistance from Westem European countries