Homework Answers
8) The price of one currency in terms of another is called D) the exchange rate
eg: 1 USD = Rs 70
which expresses value of $1 in terms of Indian rupees.
9) D) In a fixed exchange rate system exchange rates are either held constant or fluctuate only within narrow boundaries
10)
C) Dollarization exchange rate system is the replacement of a foreign currency with U.S dollars.
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8) The price of one currency in terms of another is called A) the terms of...
1) The price of one currency in terms of another is called A)...
1) The price of one currency in terms of another is called A) the exchange rate. B) purchasing power parity. C) the terms of trade. D) a currency band. 2) The three policies which cannot be maintained simultaneously by a nation (sometimes referred to as the "trilemma") do NOT include A) independent control of the money supply. B) independent control of fiscal policy. C) free flow of capital. D) fixed exchange rates 3) The foreign exchange rate refers to A) the rate of change in...
If an American real estate contracting firm is bidding on a project overseas and might need foreign currency if they wi...
If an American real estate contracting firm is bidding on a project overseas and might need foreign currency if they win the bid, but is not sure. They should buy a _________ contract. Forward Put option Futures Call option The exchange rate system where rates are determined by market forces without government intervention is a ___________ system? Fixed Managed float Freely floating Pegged Mexico’s exchange rate crisis where they had to devalue the peso by 50% in 1994 was caused...
Currencies-U.S. dollar foreign-exchange rates. Country/currency in US$ per USS Chinese Yuan 0.1466 6.8213 Indian Rupee 0.0201...
Currencies-U.S. dollar foreign-exchange rates. Country/currency in US$ per USS Chinese Yuan 0.1466 6.8213 Indian Rupee 0.0201 49.7512 Euro 1.3265 0.7539 Suppose a Big Mac costs $3.27 in Boston, and $2.69 in Paris. In this circumstance, what can we say is TRUE? a. Purchasing Power Parity does not hold, and Big Macs are relatively expensive in Boston. b. Purchasing Power Parity does not hold, and Big Macs are relatively cheap in Boston. c. Purchasing Power Parity holds, and Big Macs are...
7. Differentiate between the following terms: a) Unemployed worker and discouraged worker. b) Currency appreciation and...
7. Differentiate between the following terms: a) Unemployed worker and discouraged worker. b) Currency appreciation and currency depreciation. c) Purchasing power parity and interest rate parity. d) Current account and capital account.
Question 29 Flag qu Not yet answered Points out of 2.0 If a country applies dollarization...
Question 29 Flag qu Not yet answered Points out of 2.0 If a country applies dollarization to its currency, it has adopted a Select one: O a. fixed exchange rate with another currency. O b. floating exchange rate O c. managed float of its currency. O d. dirty float of its currency
Question 2 (10 Marks): Country Currency Currency per Canadian $ Canadian Price Index Country Price Index...
Question 2 (10 Marks): Country Currency Currency per Canadian $ Canadian Price Index Country Price Index Mexico China England Thailand France Peso Yuan Pound Baht Euro 9.00 130.00 10.00 5.00 4.50 100 100 100 900 26,000 1,000 800 35 100 100 a. For which country(ies) does Purchasing Power Parity hold? Explain your answer. b.Which currency(ies) in Table One is/are less valuable than predicted by the doctrine of Purchasing Power Parity? Explain your answer. c. Which currency(ies) in Table One is/are...
If the foreign exchange marketi already reflected in today's exchange rates A) semistrong and weakform efficient...
If the foreign exchange marketi already reflected in today's exchange rates A) semistrong and weakform efficient C) semistrong-form efficient then all relevant public information to B) strong form officient D) weak-foam effident 12) Which of the following is not one of the major reasons for MNCS to forecast exchange rates? A) to determine whether to require the subsidiary to remit the funds or invest them focally B) to decide in which foreign market to invest the excess cash C) to...
L> Moving to another question will save this response Question 9 of 302і Question 9 5...
L> Moving to another question will save this response Question 9 of 302і Question 9 5 points Save Answ Currencies-U.S. dollar foreign-exchange rates. Country/currencyin USS Chinese Yuan Indian Rupee Euro 0.1466 0.0201 1.3265 6.8213 49.7512 0.7539 Suppose a Big Mac costs $3.27 in Boston, and $2.69 in Paris. In this circumstance, what can we say is TRUE? o a. Purchasing Power Parity holds, and Big Macs are relatively expensive in Boston. O b. Purchasing Power Parity does not hold, and...
1.Appreciation of the domestic currency will a. increase domestic aggregate demand. b. decrease domestic aggregate supply....
1.Appreciation of the domestic currency will a. increase domestic aggregate demand. b. decrease domestic aggregate supply. c. decrease domestic aggregate demand, and possibly increase domestic aggregate supply. d. cause a deterioration in the trade balance, but have no effect on aggregate supply or demand. 2.In the current exchange rate arrangements of IMF members, a. a substantial number of countries do not have a freely floating exchange rate. b. the European Union countries fix their exchange rates against the US dollar....
Can anyone answer the question and explain thx alot 21) Which of the following was created...
Can anyone answer the question and explain thx alot
21) Which of the following was created in an effort to promote free trade? A) World Trade Organization B) the Sarbanes-Oxley Act C) the Organization for Economic Cooperation and Development D) multilateral development banks 22) Which type of bond is denominated in one or more currencies but is traded in external markets outside the borders of the countries issuing the currencies? A) Eurobond B) domestic bond C) international bond D) foreign...
1) The price of one currency in terms of another is called A) the exchange rate. B) purchasing power parity. C) the terms of trade. D) a currency band. 2) The three policies which cannot be maintained simultaneously by a nation (sometimes referred to as the "trilemma") do NOT include A) independent control of the money supply. B) independent control of fiscal policy. C) free flow of capital. D) fixed exchange rates 3) The foreign exchange rate refers to A) the rate of change in...
Currencies-U.S. dollar foreign-exchange rates. Country/currency in US$ per USS Chinese Yuan 0.1466 6.8213 Indian Rupee 0.0201 49.7512 Euro 1.3265 0.7539 Suppose a Big Mac costs $3.27 in Boston, and $2.69 in Paris. In this circumstance, what can we say is TRUE? a. Purchasing Power Parity does not hold, and Big Macs are relatively expensive in Boston. b. Purchasing Power Parity does not hold, and Big Macs are relatively cheap in Boston. c. Purchasing Power Parity holds, and Big Macs are...
7. Differentiate between the following terms: a) Unemployed worker and discouraged worker. b) Currency appreciation and currency depreciation. c) Purchasing power parity and interest rate parity. d) Current account and capital account.
Question 29 Flag qu Not yet answered Points out of 2.0 If a country applies dollarization to its currency, it has adopted a Select one: O a. fixed exchange rate with another currency. O b. floating exchange rate O c. managed float of its currency. O d. dirty float of its currency
Question 2 (10 Marks): Country Currency Currency per Canadian $ Canadian Price Index Country Price Index Mexico China England Thailand France Peso Yuan Pound Baht Euro 9.00 130.00 10.00 5.00 4.50 100 100 100 900 26,000 1,000 800 35 100 100 a. For which country(ies) does Purchasing Power Parity hold? Explain your answer. b.Which currency(ies) in Table One is/are less valuable than predicted by the doctrine of Purchasing Power Parity? Explain your answer. c. Which currency(ies) in Table One is/are...
If the foreign exchange marketi already reflected in today's exchange rates A) semistrong and weakform efficient C) semistrong-form efficient then all relevant public information to B) strong form officient D) weak-foam effident 12) Which of the following is not one of the major reasons for MNCS to forecast exchange rates? A) to determine whether to require the subsidiary to remit the funds or invest them focally B) to decide in which foreign market to invest the excess cash C) to...
L> Moving to another question will save this response Question 9 of 302і Question 9 5 points Save Answ Currencies-U.S. dollar foreign-exchange rates. Country/currencyin USS Chinese Yuan Indian Rupee Euro 0.1466 0.0201 1.3265 6.8213 49.7512 0.7539 Suppose a Big Mac costs $3.27 in Boston, and $2.69 in Paris. In this circumstance, what can we say is TRUE? o a. Purchasing Power Parity holds, and Big Macs are relatively expensive in Boston. O b. Purchasing Power Parity does not hold, and...
Can anyone answer the question and explain thx alot
21) Which of the following was created in an effort to promote free trade? A) World Trade Organization B) the Sarbanes-Oxley Act C) the Organization for Economic Cooperation and Development D) multilateral development banks 22) Which type of bond is denominated in one or more currencies but is traded in external markets outside the borders of the countries issuing the currencies? A) Eurobond B) domestic bond C) international bond D) foreign...
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