ZuoTi.Pro
Question

1. The quantity of U.S. dollars that traders plan to sell in the foreign exchange market...

1. The quantity of U.S. dollars that traders plan to sell in the foreign exchange market in a given period of time is independent of​ ______.

A. the expected future exchange rate

B. the price of gold

C. the exchange rate

D. U.S. demand for imports

2. Between 2014 and​ 2015, traders expected the U.S. dollar to​ ______ against the euro and it​ ______.

A.​appreciate; depreciated

B.appreciate; did appreciate

C.​depreciate; did depreciate

D.​depreciate; appreciated

Between 2001 and​ 2008, traders expected the U.S. dollar to​ ______ against the euro and it​ ______.

A.​appreciate; did appreciate

B.​depreciate; appreciated

C.​appreciate; depreciated

D.depreciate; did depreciate

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

1> B the price of gold

The US dollar is not pegged to gold, so it will remain independent of the price of gold.

2> D depreciate; appreciated

Between 2014 and 2014, US Dollar gained a large value, so it appreciated with respect to Euro though traders thought it would depriciate.

3> D.depreciate; did depreciate

The gradual decline was expected givent the EU policies taken at that time.

0 0
Add a comment
Know the answer?
Add Answer to:
1. The quantity of U.S. dollars that traders plan to sell in the foreign exchange market...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Question 82 To appreciate the U.S. dollar against the Mexican peso, in the foreign exchange market...

    Question 82 To appreciate the U.S. dollar against the Mexican peso, in the foreign exchange market the Fed could dollars and pesos Not yet answered Points out of 1.00 Remove flag Select one: A. selt, sell O B. selt;buy C. buy, sell D. buy, buy E. None of the above answers is correct because the Fed cannot affect the US exchange rate. If the exchange rate changes from 15 euros per dollar to 10 euro per dollar, the euro has...

  • 1. On January 1, 1975, the Mexican peso/U.S.$ exchange rate was Ps 12.5 = $1. By...

    1. On January 1, 1975, the Mexican peso/U.S.$ exchange rate was Ps 12.5 = $1. By 1985, the exchange rate stood at Ps 208.9 = $1. a. Are these direct or indirect quotes? b. By how much did the Mexican peso appreciate or depreciate against the dollar over this 10-year period? c. By how much did the dollar appreciate or depreciate against the peso over this period? 2. In the second half of 1997, the Indonesian rupiah depreciated by 84%...

  • The graph below shows demand and supply curves for U.S. dollars in the foreign exchange market.  As...

    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,...

  • 1a. In the foreign exchange market, a decrease in the world demand for Japanese exports a....

    1a. In the foreign exchange market, a decrease in the world demand for Japanese exports a. shifts the demand curve for yen leftward, which causes the yen to appreciate. b. shifts the demand curve for yen rightward, which causes the yen to appreciate. c. shifts the demand curve for yen rightward, which causes the yen to depreciate. d. shifts the demand curve for yen leftward, which causes the yen to depreciate. 1b. A relatively high rate of inflation in the...

  • The following exchange rates exist on a particular day. Spot exchange rate: U.S. $1.400/euro Forward exchange...

    The following exchange rates exist on a particular day. Spot exchange rate: U.S. $1.400/euro Forward exchange rate (90 days): U.S. $1.427/euro The following (annualized) interest rates on 90-day government bonds also exist on this day: Euro-denominated bonds: 8% U.S. dollar–denominated bonds: 16% Financial investors in all countries have the expectation that the spot exchange rate in 90 days will be 0.7100 euro/U.S. dollar. Are investors expecting the euro will appreciate or depreciate during the next 90 days? Consider the comparison...

  • Exchange Rates The chart below shows the exchange rate between the U.S. dollar and the Mexican...

    Exchange Rates The chart below shows the exchange rate between the U.S. dollar and the Mexican peso in 2015 and 2016. In these questions we’ll focus on changes in 2015.  Note that the chart shows the exchange rate in terms of pesos per dollar.   Suppose a meal at a restaurant in Mexico City cost 90 pesos in 2015.  Read approximate figures from the chart for the exchange rate in January 2015 and January 2016, and use those figures to answer the following...

  • please show all work in steps on a piece of paper if possible. Exercises: The Foreign...

    please show all work in steps on a piece of paper if possible. Exercises: The Foreign Exchange Market and Exchange Rate Determination EXERCISE 1 (Exchange rate determination) The exchange rate has changed from 0.93 $/C to 0.99 $/€. a) By how much has the euro appreciated against the dollar? b) By how much did the dollar depreciated against the euro?

  • The U.S. dollar appreciated relative to other major trading currencies between 2014 and early 2016 primarily...

    The U.S. dollar appreciated relative to other major trading currencies between 2014 and early 2016 primarily because U.S. exports were higher. demand for dollars had slumped in the intervening years. the United States had lower interest rates than other developed nations. U.S. multinationals had increased the investments in foreign markets. the U.S. economy had emerged from the great recession in better shape than that of any other developed nation. Which of the following occurred as a result of increased demand...

  • According to the text, the average foreign exchange trading around the world ____ per day. a....

    According to the text, the average foreign exchange trading around the world ____ per day. a. equals about $200 billion b. equals about $400 billion c. equals about $700 billion d. exceeds $1 trillion                  Assume a Japanese firm invoices exports to the U.S. in U.S. dollars. Assume that the forward rate and spot rate of the Japanese yen are equal. If the Japanese firm expects the U.S. dollar to ____ against the yen, it would likely wish...

  • 8. Balance of payments and the foreign exchange market The following graph shows the market for...

    8. Balance of payments and the foreign exchange market The following graph shows the market for euros, which is initialy in equilibrium. Suppose an economic expansion in the United States leads to an increase in the incomes of American households, causing imports from Europe to rise On the graph, illustrate the effect of an economic expansion on the market for euros by shifting the appropriate curve or curves. On the graph, illustrate the effect of an economic expansion on the...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT