2. Which of the following best
defines the real exchange rate? Group of answer choices the price
of foreign bonds in terms of domestic bonds the price of foreign
currency in terms of domestic currency the price of domestic goods
in terms of foreign goods the price of domestic currency in terms
of foreign currency
Homework Answers
Ans.- the price of domestic goods in terms of foreign goods
Real exchange rate is the ratio of a foreign price level and the domestic price level, multiplied by the nominal exchange rate. So, it measures the price of domestic goods in terms of foreign goods.
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2. Which of the following best
defines the real exchange rate? Group of answer choices the...
A reduction in 12. the real exchange rate indicates that Group of answer choices foreign goods...
A reduction in 12. the real
exchange rate indicates that Group of answer choices foreign goods
are now relatively cheaper. foreign goods are now relatively more
expensive. domestic goods are now relatively more expensive. both A
and C
Question 12 A reduction in the real exchange rate indicates that O foreign goods are now relatively cheaper. O foreign goods are now relatively more expensive. o domestic goods are now relatively more expensive. both A and C
Which statement best defines barter? It is an exchange of money for foreign currency. It is...
Which statement best defines barter? It is an exchange of money for foreign currency. It is a transaction that requires a double coincidence of wants. It is a generally accepted legal tender. It is an exchange of goods for money.
Let S = 0.90, the current exchange rate $ / €, P = 3 € the...
Let S = 0.90, the current exchange rate $ / €, P = 3 € the price level of goods in the domestic economy denominated in the currency of the country, P * = 2 $ the price level of the foreign economy in the currency of that country . (i) Find the real exchange rate in terms of foreign product units per domestic product unit. ii) If the domestic price level rises by 3% while the foreign one does...
The nominal exchange rate (E) as defined in the text represents the price of domestic currency...
The nominal exchange rate (E) as defined in the text represents the price of domestic currency in terms of foreign currency. none of the above the number of units of foreign currency you can obtain with one unit of domestic currency. the number of units of domestic goods you can obtain with one unit of foreign goods. both A and C For this question, suppose the domestic interest rate is 4% and that the foreign interest rate is 7%. And...
Define the nominal exchange rate as the foreign price of domestic currency, e.g. the amount of...
Define the nominal exchange rate as the foreign price of domestic currency, e.g. the amount of Yen per dollar. When the interest parity condition holds, we know that the domestic interest rate must be equal to: Group of answer choices the foreign interest rate minus the expected rate of appreciation of the domestic currency. the expected rate of appreciation of the domestic currency. the foreign interest rate. the expected rate of depreciation of the domestic currency. the foreign interest rate...
Assume the exchange rate is defined as f/$. What is the real exchange rate? If there...
Assume the exchange rate is defined as f/$. What is the real exchange rate? If there is and appreciation of the $, what happens to the price of foreign goods measured in dollars and of US goods measured in the foreign currency? What is the effect on US imports and exports and Y. Explain.
2. Foreign exchange rate quotations An exchange rate is the price of one country’s currency expressed...
2. Foreign exchange rate quotations An exchange rate is the price of one country’s currency expressed in another country’s currency. The exchange rates of the euro (€ ) and the Japanese yen (¥) relative to the U.S. dollar ($) are listed as follows: Spot Rate Euro € 0.6589 / $1 Yen ¥ 105.7800 / $1 When exchange rates are stated in 1.(European/American) terms, the foreign exchange rate represents the number of American dollars that can be purchased with one...
The exchange rate for a foreign currency that is determined by supply and demand is Group...
The exchange rate for a foreign currency that is determined by supply and demand is Group of answer choices a constrained exchange rate. a floating exchange rate. a fixed exchange rate. a controlled exchange rate.
Exam Question 14 of 15 Select the best answer. Which of the following sets of choices...
Exam Question 14 of 15 Select the best answer. Which of the following sets of choices may not switch back and forth by year? A. Foreign earned income exclusion versus foreign tax credit. B. Bona fide residence versus physical presence test O C. Specific date exchange rates versus average exchange rate 0 D. Foreign housing exclusion versus no foreign housing exclusion. Submit Answers
When exchange rates change: Group of answer choices the value of a foreign subsidiary's foreign currency...
When exchange rates change: Group of answer choices the value of a foreign subsidiary's foreign currency denominated assets and liabilities change to new numbers still denominated in the foreign currency. the value of a foreign subsidiary's foreign currency denominated assets and liabilities change when re-denominated into the home currency. hedging should be done after the change. none of the above.
A reduction in 12. the real
exchange rate indicates that Group of answer choices foreign goods
are now relatively cheaper. foreign goods are now relatively more
expensive. domestic goods are now relatively more expensive. both A
and C
Question 12 A reduction in the real exchange rate indicates that O foreign goods are now relatively cheaper. O foreign goods are now relatively more expensive. o domestic goods are now relatively more expensive. both A and C
Which statement best defines barter? It is an exchange of money for foreign currency. It is a transaction that requires a double coincidence of wants. It is a generally accepted legal tender. It is an exchange of goods for money.
The nominal exchange rate (E) as defined in the text represents the price of domestic currency in terms of foreign currency. none of the above the number of units of foreign currency you can obtain with one unit of domestic currency. the number of units of domestic goods you can obtain with one unit of foreign goods. both A and C For this question, suppose the domestic interest rate is 4% and that the foreign interest rate is 7%. And...
Exam Question 14 of 15 Select the best answer. Which of the following sets of choices may not switch back and forth by year? A. Foreign earned income exclusion versus foreign tax credit. B. Bona fide residence versus physical presence test O C. Specific date exchange rates versus average exchange rate 0 D. Foreign housing exclusion versus no foreign housing exclusion. Submit Answers
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