Directions: modified true/false in the blank,
indicate whether the statement is true (t) or false (f)
if false, edit the statement to make it a true statement.
1. foreign exchange refers to
foreign currencies
used by countries to conduct international trade.
2.
the trade-weighted value of the dollar is the price of one's country's currency in terms of
another country's currency.
3. flexible exchange rates and floating exchange rates refer to the same thing: relying on supply
and demand to determine the value of one currency in terms of another.
4. whenever the dollar fails, exports tend to go down and imports go up.
5. a country has
trade surplus whenever the value of the products it imports exceeds the value
of the products it exports.