• 61 questions

AP Macroeconomics Unit 6 Practice Test

Unofficial practice for AP Macroeconomics Unit 6: the balance of payments, exchange rates, the foreign exchange market and capital flows.

What does a country's balance of payments record?

Pick an answer, then press Check answer. Then you see Correct or Not quite, with the reason. Keys: A to D pick, Enter checks.

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Unofficial practice questions, not affiliated with the College Board. Bank checked October 11, 2026.

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Topic 6.1: Balance of payments accounts 12

  • A company based in the United States buys a factory in Vietnam. How does the United States record the purchase? AP Macroeconomics Course and Exam Description, essential knowledge MEA-4.A.3 and MEA-4.A.6; course topic 6.1
  • A country's capital and financial account is in surplus. What does that mean? AP Macroeconomics Course and Exam Description, essential knowledge MEA-4.A.4; course topic 6.1
  • A country's current account shows a deficit of $40 billion. What does its capital and financial account show? AP Macroeconomics Course and Exam Description, essential knowledge MEA-4.A.6; course topic 6.1
  • A nurse working in the United States sends part of each paycheck as a gift to her parents in the Philippines. How does the United States record it? AP Macroeconomics Course and Exam Description, course topic 6.1; rule read in Wikipedia, "Current account (balance of payments)"
  • A pension fund in Canada buys shares of a company in the United States. Where does the United States record the purchase? AP Macroeconomics Course and Exam Description, essential knowledge MEA-4.A.3; course topic 6.1
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Topic 6.1: Balance of payments accounts, continued

  • A saver in the United States is paid a dividend by a company in Germany. Which US account holds the dividend? AP Macroeconomics Course and Exam Description, essential knowledge MEA-4.A.1 and MEA-4.A.3; course topic 6.1
  • In one year $90 billion of financial capital flows into a country and $65 billion flows out. What are its two account balances? AP Macroeconomics Course and Exam Description, essential knowledge MEA-4.A.6; course topic 6.1
  • In one year a country exports $300 billion of goods and services and imports $360 billion. Net income from abroad is $25 billion and net unilateral transfers are −$15 billion. What is its current account balance? AP Macroeconomics Course and Exam Description, essential knowledge MEA-4.A.1; course topic 6.1
  • Trade in goods and services, income earned across borders and one-way transfers all belong to which account? AP Macroeconomics Course and Exam Description, essential knowledge MEA-4.A.1; course topic 6.1
  • What does a country's balance of payments record? AP Macroeconomics Course and Exam Description, essential knowledge MEA-4.A.5; course topic 6.1
  • What is a nation's balance of trade, and where is it counted? AP Macroeconomics Course and Exam Description, essential knowledge MEA-4.A.2; course topic 6.1
  • Which transaction is a credit in Mexico's balance of payments? AP Macroeconomics Course and Exam Description, essential knowledge MEA-4.A.6; course topic 6.1

Topic 6.2: Exchange rates 9

  • A hotel room in Paris costs 200 euros a night. The price of a euro goes from $1.10 to $1.20. What happens to the room's cost in dollars? AP Macroeconomics Course and Exam Description, essential knowledge MKT-5.A.2; course topic 6.2
  • A jacket in Mexico City costs 900 pesos. The exchange rate is 18 pesos per US dollar. What does the jacket cost in dollars? AP Macroeconomics Course and Exam Description, essential knowledge MKT-5.A.1; course topic 6.2
  • A traveler changes 600 US dollars into Canadian dollars at 1.35 Canadian dollars per US dollar. How many Canadian dollars does the traveler get? AP Macroeconomics Course and Exam Description, essential knowledge MKT-5.A.1; course topic 6.2
  • In the foreign exchange market, what does an exchange rate tell you? AP Macroeconomics Course and Exam Description, essential knowledge MKT-5.A.1; course topic 6.2
  • The Mexican peso depreciates against the US dollar. What must be true? AP Macroeconomics Course and Exam Description, essential knowledge MKT-5.A.2; course topic 6.2
  • One British pound costs 1.30 US dollars, and one US dollar costs 150 yen. How many yen does one pound cost? AP Macroeconomics Course and Exam Description, essential knowledge MKT-5.A.1; course topic 6.2
  • One euro trades for 1.25 US dollars. How many euros does one dollar buy? AP Macroeconomics Course and Exam Description, essential knowledge MKT-5.A.1; course topic 6.2
  • The price of a US dollar goes from 140 yen to 154 yen. By what percentage did the dollar appreciate against the yen? AP Macroeconomics Course and Exam Description, essential knowledge MKT-5.A.2; course topic 6.2
  • The price of a US dollar goes from 140 yen to 154 yen. What happened? AP Macroeconomics Course and Exam Description, essential knowledge MKT-5.A.2; course topic 6.2

Topic 6.3: The foreign exchange market 11

  • A US firm trades dollars for euros to pay a supplier in Spain. What does the trade add to? AP Macroeconomics Course and Exam Description, essential knowledge MKT-5.B.2; course topic 6.3
  • At the going exchange rate, more pounds are offered for sale than buyers want. With a flexible rate, what follows? AP Macroeconomics Course and Exam Description, essential knowledge MKT-5.D.1; course topic 6.3
  • The demand for pounds is Qd = 800 − 400E and the supply is Qs = 400E − 200, where E is the price of a pound in dollars. What is the equilibrium exchange rate? AP Macroeconomics Course and Exam Description, essential knowledge MKT-5.C.1; course topic 6.3
  • The exchange rate of the yen is below its equilibrium. What do market forces do? AP Macroeconomics Course and Exam Description, essential knowledge MKT-5.D.1; course topic 6.3
  • Under a floating, or flexible, exchange rate, what sets the value of a currency? AP Macroeconomics Course and Exam Description, course topic 6.3; rule read in Wikipedia, "Exchange rate"
  • What marks the equilibrium exchange rate? AP Macroeconomics Course and Exam Description, essential knowledge MKT-5.C.1; course topic 6.3
  • Where does the supply of US dollars in the foreign exchange market come from? AP Macroeconomics Course and Exam Description, essential knowledge MKT-5.B.2; course topic 6.3
  • Who adds to the demand for euros in the foreign exchange market? AP Macroeconomics Course and Exam Description, essential knowledge MKT-5.B.1; course topic 6.3
  • Why does the demand curve for a currency slope downward? AP Macroeconomics Course and Exam Description, essential knowledge MKT-5.B.1; course topic 6.3
  • You draw the market for euros, with the US dollar as the other currency. What goes on the vertical axis? AP Macroeconomics Course and Exam Description, essential knowledge MKT-5.A.1; course topic 6.3
  • You graph the market for dollars against euros. Which way do the two curves slope? AP Macroeconomics Course and Exam Description, essential knowledge MKT-5.B.2; course topic 6.3

Topic 6.4: Policies and economic conditions 11

  • A central bank buys bonds and its country's interest rates fall, while rates abroad stay the same. What happens to the country's currency? AP Macroeconomics Course and Exam Description, essential knowledge MKT-5.E.3 and MKT-5.G.1; course topic 6.4
  • A government cuts its spending and borrows far less, and the country's real interest rate falls. Other things equal, what happens in the market for its currency? AP Macroeconomics Course and Exam Description, essential knowledge MKT-5.E.2; course topic 6.4
  • In the market for the Canadian dollar, demand rises and at the same moment supply falls. What can be said for certain? AP Macroeconomics Course and Exam Description, essential knowledge MKT-5.E.1; course topic 6.4
  • Incomes rise in the United States and Americans buy more imported goods. What happens to the dollar? AP Macroeconomics Course and Exam Description, essential knowledge MKT-5.B.2 and MKT-5.E.1; course topic 6.4
  • Prices in Brazil rise much faster than prices in the countries it trades with. What happens to Brazil's currency, the real? AP Macroeconomics Course and Exam Description, course topic 6.4; rule read in Wikipedia, "Exchange rate"
  • Record numbers of US tourists vacation in Mexico. What happens in the market for pesos? AP Macroeconomics Course and Exam Description, essential knowledge MKT-5.E.1; course topic 6.4
  • Savers around the world lose confidence in the stocks and bonds of Country X and buy fewer of them. What happens to X's currency? AP Macroeconomics Course and Exam Description, essential knowledge MKT-5.E.1; course topic 6.4
  • Shoppers in Europe develop a taste for goods made in the United States. What happens in the market for dollars? AP Macroeconomics Course and Exam Description, essential knowledge MKT-5.E.1; course topic 6.4
  • The United States puts tariffs on goods from Japan, and Americans buy fewer of them. What happens in the market for dollars? AP Macroeconomics Course and Exam Description, essential knowledge MKT-5.E.1; course topic 6.4
  • Which chain links a contractionary monetary policy to the exchange rate? AP Macroeconomics Course and Exam Description, essential knowledge MKT-5.E.3 and MKT-5.G.1; course topic 6.4
  • Which event shifts the supply of British pounds to the right? AP Macroeconomics Course and Exam Description, essential knowledge MKT-5.B.2; course topic 6.4

Topic 6.5: Net exports 8

  • A country's currency appreciates. In the short run, what follows for its aggregate demand curve, its output and its prices? AP Macroeconomics Course and Exam Description, essential knowledge MOD-2.H.1; course topic 6.5
  • A country's currency depreciates. In the short run, what happens to its real output and employment? AP Macroeconomics Course and Exam Description, essential knowledge MOD-2.A.3; course topic 6.5
  • A tractor made in the United States sells for $50,000. The price of a euro falls from $1.25 to $1.00. What happens to the tractor's price for a buyer paying in euros? AP Macroeconomics Course and Exam Description, essential knowledge MKT-5.F.1; course topic 6.5
  • The Mexican peso depreciates. What happens to Mexico's net exports? AP Macroeconomics Course and Exam Description, essential knowledge MKT-5.F.2; course topic 6.5
  • Savers abroad buy many more bonds issued in Country Z. Other things equal, what happens to Z's currency and its net exports? AP Macroeconomics Course and Exam Description, essential knowledge MKT-5.F.1; course topic 6.5
  • The US dollar appreciates. What happens to US trade? AP Macroeconomics Course and Exam Description, essential knowledge MKT-5.F.1; course topic 6.5
  • Who gains when the US dollar appreciates? AP Macroeconomics Course and Exam Description, course topic 6.5; rule read in Wikipedia, "Currency appreciation and depreciation"
  • Why do a country's exports fall when its currency appreciates? AP Macroeconomics Course and Exam Description, course topic 6.5; rule read in Wikipedia, "Currency appreciation and depreciation"

Topic 6.6: Real interest rates and capital flows 10

  • A central bank pushes its country's interest rate down in the short run. What happens to net capital inflows? AP Macroeconomics Course and Exam Description, essential knowledge MKT-5.G.2; course topic 6.6
  • Country A has a nominal interest rate of 7% and expected inflation of 5%. Country B has a nominal rate of 5% and expected inflation of 1%. Toward which country does financial capital flow? AP Macroeconomics Course and Exam Description, essential knowledge MEA-3.B.2; course topic 6.6
  • Financial capital flows into a country from abroad. What happens in its loanable funds market? AP Macroeconomics Course and Exam Description, essential knowledge MKT-4.B.2; course topic 6.6
  • Higher real interest rates draw foreign savings into Country A. What happens to A's capital and financial account? AP Macroeconomics Course and Exam Description, essential knowledge MEA-4.A.4; course topic 6.6
  • Real interest rates fall in Japan and hold steady in Australia. What happens in the market for the Australian dollar? AP Macroeconomics Course and Exam Description, essential knowledge MKT-5.G.1; course topic 6.6
  • Real interest rates rise in Country A and stay the same in Country B. What happens to A's currency? AP Macroeconomics Course and Exam Description, essential knowledge MKT-5.G.1 and MKT-5.B.1; course topic 6.6
  • Real interest rates rise in Country A and stay the same in Country B. Which way does financial capital flow? AP Macroeconomics Course and Exam Description, essential knowledge MKT-5.G.1; course topic 6.6
  • Real interest rates rise in the United States relative to the rest of the world. What happens to US net exports? AP Macroeconomics Course and Exam Description, essential knowledge MKT-5.G.1; course topic 6.6
  • Savers in Country C move funds abroad to earn a higher real interest rate. What happens in the market for C's currency? AP Macroeconomics Course and Exam Description, essential knowledge MKT-5.B.2; course topic 6.6
  • Why does a gap in real interest rates between two countries move financial capital? AP Macroeconomics Course and Exam Description, essential knowledge MKT-5.G.1; course topic 6.6

How this list was compiled: Our own questions, written to Unit 6 (Open Economy: International Trade and Finance) of the College Board's AP Macroeconomics Course and Exam Description, effective fall 2026, https://apcentral.collegeboard.org/media/pdf/ap-macroeconomics-course-and-exam-description.pdf, read 2026-10-11. The rule behind each answer was read on 2026-10-11 in the essential knowledge statement of the course description or the Wikipedia article named under the question. Every calculated answer is worked from the numbers the question prints and was worked out a second time. Licence: Own work. Short quotations from the public documents named under each question.

How it works

This AP Macroeconomics Unit 6 practice test has 61 questions of our own on the open economy: international trade and finance. It is unofficial and not affiliated with or endorsed by the College Board, the owner of AP.

Read the full guide

What Unit 6 covers

The College Board's course description, effective fall 2026 and read October 11, 2026, gives Unit 6 six topics and no weights among them, so the spread is ours: balance of payments accounts (12 questions), exchange rates (9), the foreign exchange market (11), policies and conditions that move it (11), net exports (8) and real interest rates and capital flows (10).

Worked answers and sources

Currency conversions and account balances are worked from the numbers the question prints. Under each answer stands the essential knowledge statement or the Wikipedia article where the rule can be read. Graphs are asked in words: which curve shifts, and which way.

  • Name the currency whose market you are in before you shift a curve. Whoever buys euros with dollars demands euros and supplies dollars.
  • Appreciation and depreciation come in pairs. When the dollar buys more yen, the yen buys fewer dollars.
  • Take the chain one link at a time: interest rate, capital flow, currency demand, exchange rate, net exports.

Questions and answers

What is Unit 6 of AP Macroeconomics?

Open Economy: International Trade and Finance, the last of six units. It carries 10 to 13% of the multiple-choice section, by the College Board's course page, and the description allows about 5 to 7 class periods.

Is it the capital account or the financial account in AP Macro?

The current description says capital and financial account, CFA for short, and sets it against the current account so that CA + CFA = 0. Books that split it into two accounts mean the same flows. The questions here use the description's name.

How do you label a foreign exchange market graph?

Put the quantity of the currency on the horizontal axis and its price in the other currency on the vertical axis: dollars per euro in the market for euros. Demand slopes down and supply slopes up.

How many multiple-choice questions are on the AP Macroeconomics exam?

Section I has 60 questions in 1 hour 10 minutes and counts for 66% of the score, by the College Board's exam page. Section II is three free-response questions, one long and two short, in 1 hour.

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