The exchange rate for a foreign currency that is determined by supply and demand is Group...
answer these 4 . will rate after The exchange rate for a foreign currency that is determined by supply and demand is O a constrained exchange rate. O a floating exchange rate. O a fixed exchange rate. O a controlled exchange rate. in bank An open-market purchase of government bonds by the Fed results in reserves and in the supply of money. O an increase; a decrease O a decrease; a decrease O an increase; an increase O a decrease;...
40.) An exchange rate that is completely determined by the foreign exchange market through supply and demand is considered a: Managed exchange rate. Freely floating exchange rate. Arbitrage. Direct quote.
Demand for a country's currency in the foreign exchange market is given by where XR is the US dollar price of the currency, and A is the quantity of the currency. Supply for Country A's currency in the foreign exchange market is given by The central bank of the country fixes the exchange rate at 62 USD. The central bank needs to sell A = ________ in the foreign exchange market to maintain the fixed exchange rate. [Fill in the...
The rate at which a foreign exchange dealer converts one currency into another currency on a particular day is the Multiple Choice o forward exchange rate. O fixed exchange rate. O future exchange rate. o spot exchange rate. O floating exchange rate.
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...
In the open-economy macroeconomic model, if the supply of loanable funds shifts right Group of answer choices the interest rate falls and the supply of dollars in the market for foreign-currency exchange shifts right. the interest rate falls and the supply of dollars in the market for foreign currency exchange shifts left. the interest rate rises and the demand for dollars in the market for foreign currency exchange shifts right. the interest rate rises and the demand for dollars in...
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.
One source of the supply of dollars in the foreign exchange rate market is Group of answer choices the sale of U.S. domestic financial assets to foreigners. imports of merchandise into the United States. gold sold to foreigners. the purchase of U.S. exports.
An ___ reflects the amount of one currency required to purchase one unit of another currency. To put it simply, it is the ___ of foreign currency. This rate is set by ___ in foreign exchange markets. When a currency becomes more valuable in the market, this is called ___; when a currency becomes less valuable, this is called ___. possible answers: interest rate supply and demand exchange rate inflation rate price depreciation appreciation monetary policy
The graph below shows demand and supply curves for U.S. dollars in the foreign exchange market. As you can see, the exchange rate (in terms of foreign currency units per dollar) is initially equal to E0. Suppose that next year there’s a huge increase in the number of foreigners – from Europe, China, and everywhere else – who decide to visit the U.S. as tourists. How would this huge increase in tourism in the U.S. affect the exchange rate? To answer this,...