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Foreign Exchange Market Review Flashcards | StudBud
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Foreign Exchange Market Review
Foreign Exchange Market Review
7 terms
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StudBud Administration
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707 plays
foreign exchange market review quiz for students after a chapter presentation
Flashcards
7 cards
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Practice quiz
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Questions
7
Answers
1
If European consumers wish to purchase American goods, then they will:
supply euros to the foreign exchange market
demand Japanese yen from the foreign exchange market
supply U.S. dollars to the foreign exchange market
demand euros from the foreign exchange market
2
If 100 Japanese yen is equal to 20 British pounds, then the purchasing power parity is:
10 yen per pound
5 yen per pound
1 yen per pound
15 yen per pound
3
If you have 100 euros and the euro-dollar exchange rate is 1.5, then your 100 euros is worth:
$50
$75
$150
$115
4
The U.S. dollar appreciates when:
the supply of dollars increases
the supply of euros decreases
the demand for dollars decreases
the demand for dollars increases
5
What is the basic role of the foreign exchange market?
to alter exchange rates
to purchase foreign goods
to exchange different currencies based on exchange rates
to use domestic currency to purchase domestic goods
6
Is it possible for the U.S. dollar and the euro to appreciate to each other at the same time?
no
yes
7
If the U.S. dollar loses value or purchasing power in foreign trade, then the U.S. dollar has:
depreciated
appreciated
maintained its value
