If the demand for Indian Rupee ____, the Indian Rupee will ____, other things being

equal. *
2 points

increases; appreciate
increases; depreciate
decreases; appreciate
2nd and 3rd choices are correct

A large increase in the income level in Philippines along with no growth in the
Indonesia income level is normally expected to cause (assuming other factors are
constant) a(n) ____ in Philippines demand for Indonesia goods, and the Philippines
peso should ____. *
2 points

increase; appreciate
increase; depreciate
decrease; depreciate
decrease; appreciate

Which event would most likely result in an appreciation of the Philippine peso? *
2 points

Philippines inflation is very high.

The Bangko Sentral ng Pilipinas indicates that it will raise interest rates.
Future interest rates in the Philippines are expected to decline.
Japan is expected to increase interest rates in the near future.

Any event that increases the Philippines demand for Thailand baht should result in
a(n) ____ in the value of the baht with respect to ____, other things being equal. *
2 points

increase; peso
decrease; peso
increase; baht
decrease; baht

An increase in Philippines interest rates relative to Honkong interest rates would

likely ____ the Philippines demand for Hongkong dollar and ____ the supply of
Hongkong dollar for sale. *
2 points

increase; increase
increase; reduce
reduce; increase
reduce; reduce
Investors from Japan, Philippines, and China frequently invest in each other based
on prevailing interest rates. If China’s interest rates increase, Japanese investors
are likely to buy ____ peso denominated securities, and the Chinese yuan is likely to
____ relative to the peso. *
2 points

more; depreciate
more; appreciate
fewer; depreciate
fewer; appreciate

If the Japanese yen is expected to appreciate against the Philippine peso and
interest rates in the Philippines and Japan are similar, banks may try speculating on
this anticipated exchange rate movement by borrowing ____ and investing in ____.  *
2 points

yen; yen
yen; peso
peso; yen
peso; peso

If China inflation suddenly becomes much higher than Philippines inflation, the
Philippines demand for China goods will ____. In addition, the supply of China’s
yuan to be sold for pesos will ____; both forces will place ____ pressure on the value
of the yuan. *
2 points

increase; decline; upward

increase; decline; downward
decrease; increase; upward
decrease; increase; downward