Wiley CPA Exam Questions- BEC

3 CommentsJuly 08, 2010 2011 BEC

The following is from the Online Wiley CPA Test Bank.

  1. A short-term speculative rise in the worldwide value of domestic currency could be moderated by a central bank decision to

    2. A: Sell domestic currency in the foreign exchange market.
    B: Buy domestic currency in the foreign exchange market.
    C: Sell foreign currency in the foreign exchange market.
    D: Increase domestic interest rates.

  2. If the US dollar declines in value relative to the currencies of many of its trading partners, the likely result is that

    3. A: Foreign currencies will depreciate against the dollar.
    B: The US trade deficit will worsen.
    C: US exports will tend to increase.
    D: US imports will tend to increase.

  3. Which of the following changes would create pressure for the Japanese yen to appreciate relative to the US dollar?

    4. A: An increase in incomes in Japan.
    B: A change in US tastes in favor of Japanese goods.
    C: A decrease in US incomes.
    D: A change in Japanese tastes in favor of US goods.

  4. The real risk-free rate

    5. A: Includes a default premium.
    B: Assumes that inflation is expected.
    C: Includes a liquidity premium.
    D: Is the basic component of interest.

  5. Exchange rates are determined by

    6. A: Each industrial country’s government.
    B: The International Monetary Fund.
    C: Supply and demand in the foreign exchange market.
    D: Exporters and importers of manufactured goods.

Related posts you might like:

  1. Wiley CPA BEC MCQ: Economics The following BEC question is from the Wiley CPA Test Bank for BEC. A short-term speculative rise in the worldwide value of domestic currency could be moderated by a...
  2. Wiley CPA Exam Questions – REG The following is from the Online Wiley CPA Test Bank. Seymour Thomas named his wife, Penelope, the beneficiary of a $100,000 (face amount) insurance policy on his life. The policy...
  3. Wiley CPA Exam Questions – REG AMT Click: Online Wiley CPA Review Software The alternate minimum tax (AMT) is computed as the A: Excess of the regular tax over the tentative AMT. B: Excess of the...

Tags:

Add New Comment



Comment

3 Responses to "Wiley CPA Exam Questions- BEC"

  1. CPA_Enthusiast says:
    July 13, 2010 at 9:56 pm

    1. a
    2. c
    3. b
    4. b
    5. c

  2. FutureCPA10 says:
    January 6, 2011 at 2:11 pm

    1. a
    2. c
    3. b
    4. d
    5. c

  3. tim says:
    January 11, 2011 at 10:31 pm

    1.A
    2.C
    3.B
    4.D
    5.C