1.The foreign exchange market is where (10 points)
currencies are exchanged
services are exchanged
goods are exchanged
capital is exchanged
2.The foreign exchange rate is defined as the (10 points)
price at which one currency exchanges for another
rate or the speed which the currencies of the world are traded
volume of the world currencies traded
None of the above
3.When a currency decreases in value relative to another currency the currency has (10 points)
depreciated
decelerated
appreciated
accelerated
4.Assume yesterday one U.S. dollar exchanged for 115 yen. Today the same dollar exchanges for 110 Yen. We can conclude that the (10 points)
dollar has appreciated relative to the Yen
dollar has depreciated relative to the Yen
Yen has appreciatied relative to the dollar
Both (b) and (c) are correct
5.When a currency depreciates, its value has (10 points)
remained constant against that of another country
fallen relative to another currency
risen relative to another currency
fluctuated around a particular value
6.When the U.S exports goods and services to France, there is an increase in the (10 points)
supply of dollars
supply of Euros
demand for dollars
both (b) and (c) are correct
7.In the Forex, which of the following increases the demand for dollars (10 points)
Japanese interest rates rise relative to the U.S. interest rates
the expected future exchange rate falls
the U.S. interest rate increases
both (a) and (c) are correct
8.Inflation rate in the U.S. is higher this year relative to the inflation rate in Europe. What happens to the value of the dollar in the Forex (10 points)
the dollar depreciates; the Euro appreciates
the dollar appreciates; the Euro depreciates
the dollar depreciates; the Euro depreciates
you can't tell without knowing the inflation rates
9.Assume that GDP growth in Canda is higher than that of the U.S. GDP growth rate. What happens to the value of the Canadian dollar relative to the U.S. dollar (10 points)
Canadian dollar appreciates
Canadian dollar depreciates
the U.S. dollar appreciates
both (b) and (c) are correct
10.The Japanese develop a cure for baldness and that cure is only available in Japan. What happens to the value of the dollar relative to the Yen (10 points)
the dollar depreciates and the Yen appreciates
the dollar appreciates and the Yen appreciates
the dollar appreciates and the Yen depreciates
the dollar depreciates and the Yen depreciates
currencies are exchanged
services are exchanged
goods are exchanged
capital is exchanged
2.The foreign exchange rate is defined as the (10 points)
price at which one currency exchanges for another
rate or the speed which the currencies of the world are traded
volume of the world currencies traded
None of the above
3.When a currency decreases in value relative to another currency the currency has (10 points)
depreciated
decelerated
appreciated
accelerated
4.Assume yesterday one U.S. dollar exchanged for 115 yen. Today the same dollar exchanges for 110 Yen. We can conclude that the (10 points)
dollar has appreciated relative to the Yen
dollar has depreciated relative to the Yen
Yen has appreciatied relative to the dollar
Both (b) and (c) are correct
5.When a currency depreciates, its value has (10 points)
remained constant against that of another country
fallen relative to another currency
risen relative to another currency
fluctuated around a particular value
6.When the U.S exports goods and services to France, there is an increase in the (10 points)
supply of dollars
supply of Euros
demand for dollars
both (b) and (c) are correct
7.In the Forex, which of the following increases the demand for dollars (10 points)
Japanese interest rates rise relative to the U.S. interest rates
the expected future exchange rate falls
the U.S. interest rate increases
both (a) and (c) are correct
8.Inflation rate in the U.S. is higher this year relative to the inflation rate in Europe. What happens to the value of the dollar in the Forex (10 points)
the dollar depreciates; the Euro appreciates
the dollar appreciates; the Euro depreciates
the dollar depreciates; the Euro depreciates
you can't tell without knowing the inflation rates
9.Assume that GDP growth in Canda is higher than that of the U.S. GDP growth rate. What happens to the value of the Canadian dollar relative to the U.S. dollar (10 points)
Canadian dollar appreciates
Canadian dollar depreciates
the U.S. dollar appreciates
both (b) and (c) are correct
10.The Japanese develop a cure for baldness and that cure is only available in Japan. What happens to the value of the dollar relative to the Yen (10 points)
the dollar depreciates and the Yen appreciates
the dollar appreciates and the Yen appreciates
the dollar appreciates and the Yen depreciates
the dollar depreciates and the Yen depreciates