Economic Factors

Question 1

Favorable trade

Answer 1

Exports are greater than its imports

Question 2

Unfavorable trade

Answer 2

Imports exceed its exports

Question 3

Dollar goes up…

Dollar goes down….

Answer 3

Importers want

• importers want their national currency to be strong against foreign currencies

Exporters want

• exporters want their national currency to be weak against foreign currencies

Question 4

If fed lowers discount rate,

Answer 4

Makes it cheaper for banks to borrow money. Money supply increases so interest rates fall

Question 5

4 phases of Business cycle

Answer 5

1. Expansion- up
2. Peak- top
3. Contraction- down
4. Trough- U