Homework Answers
The US import contracts written in foreign currency and US export contracts written in USD
Explanation
if imports written in foreign currency importer has to pay more USD to the foreign exporter after devaluation of currency
if exports written in USD importer receive USD but foreign exchange earned will be lower after devaluation of currency
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Suppose that the U.S. considers devaluing its dollar against a foreign currency to improve the trade...
A domestic currency appreciation could lead to an immediate negative effect on the trade balance, if...
A domestic currency appreciation could lead to an immediate negative effect on the trade balance, if the domestic: O import and export contracts are written in dollar O import and export contracts are written in foreign currency. O import contracts are written in foreign currency and the domestic export contracts are written in domestic currency. O import contracts are written in domestic currency and the domestic export contracts are written in foreign currency
Consider the data in the table below: Nominal Exchange Rates for the U.S. Dollar Country Foreign...
Consider the data in the table below: Nominal Exchange Rates for the U.S. Dollar Country Foreign currency/U.S. dollar U.S. dollars/foreign currency United Kingdom (pound) 0.641 1.559 Canada (Canadian dollar) 1.008 0.992 Mexico (peso) 12.39 0.081 Japan (yen) 83.338 0.012 European Union (euro) 0.756 1.322 a. Calculate the nominal exchange rate between the Mexican peso and the Japanese yen. Express in two ways. Instructions: Enter your responses rounded to three decimal places. One peso = ___ yen One yen = ___...
If the U.S. dollar appreciates relative to foreign currency, what is likely to be the result...
If the U.S. dollar appreciates relative to foreign currency, what is likely to be the result for the U.S. company that has company branches abroad? Select one: a. Profits will increase, when measured in U.S. dollars. b. Profits will decrease, when measured in U.S. dollars. c. Foreign exports to the United States will decrease. d. Foreign demand for U.S. goods and services will decrease. If a company is considering optimizing the physical location for every activity in the value chain,...
. Refer to Figure 2.3. Suppose that the U.K agreed to peg its currency against the...
. Refer to Figure 2.3. Suppose that the U.K agreed to peg its currency against the U.S. dollar at $2.00 per pound during the Bretton Woods system. a. Assume that b. Are there any long-term effects on the reserves and/or the money supply of the U.K. central bank? the U.S. increases its imports from the U.K. As a result, the Bank of England would have to do what? Explain The Market for British Pounds Ssye S/E S (E) 2.20 …-…...
What is the effect of a dollar appreciation against all foreign currencies? The current account balance...
What is the effect of a dollar appreciation against all foreign currencies? The current account balance decreases, and the trade balance increases. The current account balance and the trade balance are both unaffected. The current account balance and the trade balance both decrease. The current account balance and the trade balance both increase. The current account balance increases, and the trade balance decreases.
If a firm insures itself against foreign exchange risk, it is engaging in countertrade arbitrage currency...
If a firm insures itself against foreign exchange risk, it is engaging in countertrade arbitrage currency speculation. forecasting hedging. QUESTION 19 If the exchange rate between the euro and the dollar is €1.00 = $1.10, and an American tourist in France is buying a product whose price is €50, how much in U.S. dollars would the tourist have to pay for the product? $45.00 $50.00 $45.45 $55.00 $50,50
DQuestion 36 2 pts The following table shows the number of U.S. dollars required to buy...
DQuestion 36 2 pts The following table shows the number of U.S. dollars required to buy one British pound and the number of U.S. dollars required to buy one euro between February 1, 2016, and September 1, 2016: U.S. Dollars Required U.S. Dollars to Buy 1 British Pound 1.429 Required to Buy 1 Euro 1.1092 Date February 1, 2016 March 1, 2016 1.425 April 1, 2016 1.432 May 1, 20161.452 June 1, 2016 1.420 July 1, 20161.313 August 1, 2016...
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...
Suppose it takes 1.3037 U.S. dollars today to purchase one British pound in the foreign exchange...
Suppose it takes 1.3037 U.S. dollars today to purchase one British pound in the foreign exchange market, and currency forecasters predict that the U.S. dollar will depreciate by 12% against the pound over the next 30 days. How many dollars will a pound buy in 30 days? Enter your answer rounded to four decimal places. For example, if your answer is 12.34567 then enter as 12.3457 in the answer box.
Questions 3. Exchange Rate Effects on Investing. Explain how the appreciation of the Australian dollar against...
Questions 3. Exchange Rate Effects on Investing. Explain how the appreciation of the Australian dollar against the U.S. dollar would affect the return to a U.S. firm that invested in an Australian money market security 4. Exchange Rate Effects on Borrowing. Explain how the appreciation of the Japanese yen against the U.S. dollar would affect the return to a U.S. firm that borrowed Japanese yen and used the proceeds for a U.S. project. 6. Bid/ask Spread. Utah Bank's s bid...
A domestic currency appreciation could lead to an immediate negative effect on the trade balance, if the domestic: O import and export contracts are written in dollar O import and export contracts are written in foreign currency. O import contracts are written in foreign currency and the domestic export contracts are written in domestic currency. O import contracts are written in domestic currency and the domestic export contracts are written in foreign currency
. Refer to Figure 2.3. Suppose that the U.K agreed to peg its currency against the U.S. dollar at $2.00 per pound during the Bretton Woods system. a. Assume that b. Are there any long-term effects on the reserves and/or the money supply of the U.K. central bank? the U.S. increases its imports from the U.K. As a result, the Bank of England would have to do what? Explain The Market for British Pounds Ssye S/E S (E) 2.20 …-…...
If a firm insures itself against foreign exchange risk, it is engaging in countertrade arbitrage currency speculation. forecasting hedging. QUESTION 19 If the exchange rate between the euro and the dollar is €1.00 = $1.10, and an American tourist in France is buying a product whose price is €50, how much in U.S. dollars would the tourist have to pay for the product? $45.00 $50.00 $45.45 $55.00 $50,50
DQuestion 36 2 pts The following table shows the number of U.S. dollars required to buy one British pound and the number of U.S. dollars required to buy one euro between February 1, 2016, and September 1, 2016: U.S. Dollars Required U.S. Dollars to Buy 1 British Pound 1.429 Required to Buy 1 Euro 1.1092 Date February 1, 2016 March 1, 2016 1.425 April 1, 2016 1.432 May 1, 20161.452 June 1, 2016 1.420 July 1, 20161.313 August 1, 2016...
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...
Questions 3. Exchange Rate Effects on Investing. Explain how the appreciation of the Australian dollar against the U.S. dollar would affect the return to a U.S. firm that invested in an Australian money market security 4. Exchange Rate Effects on Borrowing. Explain how the appreciation of the Japanese yen against the U.S. dollar would affect the return to a U.S. firm that borrowed Japanese yen and used the proceeds for a U.S. project. 6. Bid/ask Spread. Utah Bank's s bid...
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