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Suppose that a bundle of goods sells for $425 in the USA and it sells for 12,750 Baht in Thailand. The current exchange rate between the countries is 31.9 Baht/$. The market exchange rate turns out to be the Absolute Purchasing Power Parity rate.  

Suppose that a bundle of goods sells for $412 in the USA and it sells for 12,990 Baht in Thailand.The absolute PPP exchange rate is ____ Baht per dollar.  (Round to TWO digits behind the decimal.)

The lender of last resort is the World Bank. When a country runs out reserve currency, it can request a loan from them. 

The WTO and IMF investigated China and found evidence of currency manipulation. This acted to fuel the trade war between the nations.  

Small countries might choose to fix or peg their exchange rates because this increases stability and allows them to trade in an internationally accepted currency. 

Money supply is the amount of money in circulation in an economy. 

In 2008 a credit crisis spread across the world to Europe. This crisis started in Asia.  

The government sets its own artificial exchange rates in Burma. They make the Burmese currency more valuable than it really is in the marketplace.  

In the Quantity Theory of Money equation, “V” captures the level of the money supply.  

One video suggested that Greece had been lying about its debt level to make itself look better off financially than it actually was.