1.

(06.02 MC) Use the data table to answer the following question.

U.S. dollar per shekel (Israel)	$0.30
U.S. dollar per euro (European Union)	$1.20

Which of the following statements is true based on the data table? (5 points)

	One shekel is worth four euros.
	One euro is worth four shekels.
	The shekel is appreciating while the euro is depreciating.
	The European Union does more business with the United States than with Israel.
	The same good will be less expensive in Israel than in the European Union.

2.

(06.02 MC) The exchange rate is $1.25 Canadian dollar per U.S. dollar. If a good or service in Canada costs $50 in Canadian dollars, how many U.S. dollars would an American have to spend for that same product? (5 points)

	$12.50
	$28.50
	$40
	$62.50
	$75

3.

(06.02 MC) If the dollar price of the euro increases from $1.50 to $2.00, the dollar is ________ and European goods are ________ expensive to Americans. (5 points)

	appreciating; less
	appreciating; more
	depreciating; less
	depreciating; more
	depreciating; equally

4.

(06.02 LC) What is the price of one unit of a country's currency in the number of units of another country's currency called? (5 points)

	The terms of trade
	The opportunity cost
	The global price
	The exchange rate
	The trade multiplier

5.

(06.02 MC) When a country's currency appreciates, its exports will ________ and its imports will ________. (5 points)

	increase; decrease
	decrease; increase
	increase; increase
	decrease; decrease
	increase; remain constant