Which of the following is not a source of demand for the Australian dollar?A currency trader who thinks the value of the Australian dollar will be greater in the future relative to the value today.An Australian bank that wants to buy a Japanese bond.An Indian financier who wants to buy an Australian bond.A French consumer who wants to buy Australian electronics.A German firm that wants to purchase agricultural products from Australia.

A rise in the value of the Australian dollar against the US dollar tends to:

f the Australian dollar appreciates, the effect of this is likely to be that:Group of answer choicesexports will be more expensiveimport-competing domestic goods will be relatively cheaper‘imported disinflation’ may become a benefitimports will be more expensive‘imported inflation’ may become a problem

When a smaller amount of a foreign currency is required to buy the Australian dollar, the currency is said to have _______ with respect to the dollar.Group of answer choicesdepreciatedremained fixedappreciatedconsolidated

Which of the following will cause the Australian dollar (AUD) to appreciate against the US dollar (USD)?An increase in Australian demand for US electronics.Expected depreciation of the Australian dollar against the US dollar amongst currency traders.A decrease in US demand for Australian coal.A decreasing Australian price level.A decrease in the Australian interest rate.

In general, a appreciation of the Australian dollar against the Japanese yen will benefit: Question 2 Answer a. a firm that sells in Australia but produces in Japan. b. a firm that sells in Japan and produces in Japan. c. a firm that sells in Japan but produces in Australia. d. no Australian producers.