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Table of Contents

Appendix II. Examination Questions.

for foreign productions, are those in which money will be of lowest

  1. The effects of the depreciation of the paper currency in the United States are thus described by Mr. Wells: “It renders it impossible to sell abroad the products which have cost too much at home, and invites from other countries the products of a cheaper labor paid for in a sounder currency. It exaggerates imports, while destroying our ability to pay in kind.” State how far you agree with the deductions here drawn, assigning your reasons where you differ.
  1. When the foreign exchanges are manifestly against a country, and a balance of indebtedness is the cause, the equilibrium can be restored in two ways. State and explain the operation of each.
  1. What are the conditions which determine for a country a high range of general prices? How far is this advantageous?
  1. What is the effect of the imposition of a tribute by one country on another upon the course of trade between them, and the terms on which they exchange commodities; and why?
  1. For what reasons may a nation's exports habitually exceed or fall short of its imports?
  1. Explain the real and nominal exchange.
  1. Expound Mr. Mill's theory of the influence which a convertible currency exercises on foreign trade.
  1. What is the effect
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