1.  Which of the following appears as a positive item on the balance of payments account for the United States?

U.S. government sending aid to natural disaster victims in Asia
American tourists spending money in the other countries
Buying of U.S. Treasury bonds by a foreign bank
Payment of stock dividends by U.S. firms to foreign shareholders

2.  Comparing everything that the United States owes to other nations, and what they owe to the United States, the United States is currently a(n)
net creditor.
net debtor.
international banking asset.
international banking liability.

3.  If a Japanese importer could buy $1,000 U.S. for 122,000 yen, the rate of exchange for $1 would be
8.19 yen.
122 yen.
820 yen.
1,220 yen.

4.  If a European importer can buy $10,000 for 11,100 euros, the exchange rate for the euro is
1 euro = $0.80.
1 euro = $0.90.
1 euro = $0.95.
1 euro = $1.11.

5.  Which system would be accompanied by occasional currency interventions by central banks to stabilize or alter rates to avoid persistent balance of payments deficits or surpluses?
Gold standard
Fixed exchange rates
Flexible exchange rates
Managed floating exchange rates

6. a) Do protectionist policies benefit producers, consumers, workers, or the government? Explain. b) Explain how the "Buy American" theme hurts Americans.

7.  a) Identify the four major tools of monetary policy. b) Describe how changes in the Fed's major policy tools leads to [1] expansionary and [2] restrictive or contractionay monetary policies.