give one article of how foreign exchange reserves are affected by a country that mainly exports crude oil or another commodity
give one article of how foreign exchange reserves are affected by a country that mainly exports...
(11)How is it possible for a country to import more goods than it exports? The government can subsidize imports. The government can subsidize exports. Foreigners can lend the country money. Private domestic banks can lend the country money. (12)The nominal foreign exchange rate is the value of foreign goods in the domestic currency. the value of domestic goods in the foreign currency.the rate at which one currency is traded for another. the difference between what a good costs in the domestic...
________ cause foreign exchange to leave the country, and thus they are registered as a ________ in the balance of payments. Select one: a. Imports; credit b. Imports; debit c. Exports; credit d. Exports; debit
Answer one question per page, double space: How are foreign exchange rates affected by differences in the interest rates prevailing in various countries? In foreign exchange, what are spot and forward transactions? How do they differ? Please provide your discussion about the risks associated with foreign exchange rate fluctuations focusing on economic, transaction, and translation risks, and hedging methods in response to those currency risks.
Questions 3-5 correspond with the US Market for Foreign Exchange with Japan, where the price of $ foreign exchange is dollars divided by yen (i.e.), and quantity is the quantity of yen. 3. In the U.S. market for foreign exchange with Japan, how is this market affected by an increase in exports (i.e. US exports to Japan)? a. increase in the demand for foreign exchange b. decrease in the demand for foreign exchange c. increase in the supply of foreign...
Consider two fictional economies, one called the domestic country and the other the foreign country. Given the transactions listed below, construct the balance of payments for each country. If necessary, include a statistical discrepancy. a. The domestic country purchased $120 in oil from the foreign country b. Foreign tourists spent $23 on domestic ski slopes. c. Foreign investors were paid $12 in dividends from their holdings of domestic equities d. Domestic residents gave $20 to foreign charities e. Domestic businesses...
Foreign Exchange Market The foreign exchange market serves two main functions. The first is to convert the currency of one country into the currency of another, and the second is to provide some insurance against foreign exchange risk. When two companies are trying to provide some insurance against foreign exchange risk, they can either exchange the currency immediately, which is caled spot exchange, or at a specific date in the future, which is called a forward exchange rate.
Investment flows from one country to another occur based on the investors' a. spot exchange rate when making the investment. b. the realized real rate of return on the foreign investment. c. the expected real rate of return on the foreign investment. d. nominal rate of return on the foreign investment
2. Foreign exchange rate quotations An exchange rate is the price of one country’s currency expressed in another country’s currency. The exchange rates of the euro (€ ) and the Japanese yen (¥) relative to the U.S. dollar ($) 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...
What determines the exchange rate? If a nation's currency appreciates in the foreign market, how will this impact net exports? Explain.
2013607#918 98 Net exports will increase if: Select one: O a. the exchange rate for the dollar appreciates b. the exchange rate for the dollar depreciates c. there is a decrease in investment O d. there is a decrease in foreign Real GDP On a simple circular flow diagram: