1)
If exchange rate increase, value will decrease and if exchange rate decrease, value of currency will appreciate.
Hence, correct option is A) Appreciated
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1) If the exchange rate changes from $1 acquire 140 Euro to $1 acquires 80 Euro,...
Suppose that the euro/US dollar exchange rate changes from 1,3 dollar per euro to 1,1 dollar per euro. Then: a) The euro has depreciated against the dollar. b) This will decrease the demand for Eurozone goods by the United States. c) This will lead to a rise in exports by the United States to the Eurozone. d) The euro has appreciated against the dollar.
3) The exchange rate between the dollar and the euro is $1.30/€. a) A good that costs 100 euros in France sells for how much in the U.S.? b) A good that costs 100 dollars in the U.S. sells for how much in France? c) Suppose that the exchange rate changes to $1.35/ €. Which currency has appreciated? d) Which currency has depreciated? e) What is the new cost in the U.S. of a French good that sells for 100...
Question 48 The exchange rate of US Dollar to Euro yesterday, May 8 was $1/€0.89222. The exchange rate two months ago on March 8 was $1/€0.89301. Which one is true about the change over the two moths? a) Dollar is appreciated b) Both currencies are appreciated c) Euro is appreciated d) Dollar is depreciated e) c and d Question 46 Why does a ‘black market’ of foreign exchange occur in many countries, especially in the low-income developing countries? a) Due...
If the exchange rate between the Japanese Yen and the US Dollar changes from 100 to 110 yen per dollar, _____. A. the yen has appreciated against the dollar B. the dollar has depreciated against the yen C. the dollar has appreciated against the yen D. the cost of a yen has increased in terms of dollars
Volkswagen's Hedging Strategy
1. Why did Volkswagen suffer a 95% drop in its 4th
quarter, 2003 profits?
2. Do you think the Volkswagen’s decision to hedge only 30% of
its anticipated U.S. sales was a good? Why or why not?
3. Do you think the Volkswagen’s decision to revert back to
hedging 70% of its foreign currency exposure was a good decision?
Why or why not?
Embraer and the Wild Ride of the Brazilian
Real
4. Is a decline in...
2006, interest rates increased from 5% to 7%, when this happens consumers are A. less likely to save, that is, sell a financial asset. B. more likely to save, that is, sell a financial asset. C. less likely to save, that is, purchase a financial asset. D. more likely to save, that is, purchase a financial asset. I. In 2. If commercial banks hold all their assets in the form of required reserves: A. only they will be able to...