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Question 1 1 pts Word Bank Matching (each word is used only once): Tariff: Quota; Current Account; Financial Account: Depreciation; Appreciation; Nominal Exchange Rate; Real Exchange Rate; Fixed Exchange Rate; Floating Exchange Rate; Purchasing Power Parity 1. Assume 1 USD =6,5 Vuan. This is an example of 2. Assume that 1 USD can purchase 1 cookie in the US or 2.2 cookies in China. The ratio of 1 US cookie to 2.2 Chinese cookies is an example of 3. A ratio that adjusts for purchasing power between countries based on a basket of goods in an index is called 4. Assume a country that was open to free trade imported 1000 cars per day at a world price of $10,000 per car. Assume the domestic price is $12,000. If the country decides to limit the quantity of cars imported per day to 700 maximum, this is an example of . and if the government decides to place a tax of $1,500 per imported car only. this is an example of 5. If the US dollar increases in value relative to another currency, it is called of the US dollar. 6. If the US dollar decreases in value relative to another currency, it is called of the US dollar. 7. The account that measures the amount of goods \& services imported and exported, as well as net transfer payments and net investment flows is called the 8. The account that measures the international exchange of assets fincluding cash & currency) is called the 9. If a country wants to keep the value of their currency equal to the value of another country's currency, then that country is engaging in , but if the value of currency is determined by market forces without government intervention, the country is engaging in

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