Question

True or False 1) Forward transactions involve exchanges at a future date, completed at the forward...

True or False

1) Forward transactions involve exchanges at a future date, completed at the forward rate.

2) When the currency of your country appreciates relative to another country then your

Country’s product prices decrease abroad.

3) When your firm creates sales in another country, your firm is holding the money of some other country, you exchange that currency for U.S. dollars, so you are ________ U.S. dollars and ________ that other country's money for the exchange.

A) demand, supply          B) supply, supply

C) supply, demand          D) demand, demand

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Which of the following is not accurate regarding foreign exchange markets? Select one: a. All of...
Which of the following is not accurate regarding foreign exchange markets? Select one: a. All of the answers are accurate b. spot foreign exchange transactions involve the immediate exchange of currencies at current exchange rates c. forward foreign exchange transactions involve the exchange of currencies at a specified exchange rate at a specific date in the future d. Foreign exchange risk is the risk that cash flows will vary as the actual amount of U.S. dollars received on a foreign...
5.           If the U.S. government wants to strengthen the dollar, it can: a)have the Fed use...
5.           If the U.S. government wants to strengthen the dollar, it can: a)have the Fed use monetary policy to reduce interest rates, thereby increasing capital flows into its country. b)reduce the supply of dollars on the international currency market by limiting the right of U.S. citizens to buy foreign currencies. c)have the Fed buy foreign currency, paying for it with newly printed dollars. d)Answers (a), (b), and (c) will all help the government to set the exchange rate at its...
8) If the deficit is financed by selling bonds to the ________, the money supply will...
8) If the deficit is financed by selling bonds to the ________, the money supply will ________, increasing aggregate demand, and leading to a rise in the price level. A) public; rise B) public; fall C) central bank; rise D) central bank; fall 9) Keynes's theory of the demand for money implies that velocity is A) not constant but fluctuates with movements in interest rates. B) not constant but fluctuates with movements in the price level. C) not constant but...
ECO - 252 - Macroeconomics. 7. True/False statements. Simply state if the statement is true or...
ECO - 252 - Macroeconomics. 7. True/False statements. Simply state if the statement is true or false. No explanation required. a. An increase in U.S. net exports decreases the supply of dollars. b. If net exports are negative, foreign assets bought by Americans are greater than American assets bought by foreigners. c. A decrease in a country's real interest rate reduces net capital outflow. d. If a U.S. resident buys a foreign bond, this action is included in the U.S....
Question 1 The exchange rate is the: The opportunity cost at which goods are exchanged The...
Question 1 The exchange rate is the: The opportunity cost at which goods are exchanged The volume at which exports flow out of the country. Price of one currency in terms of another. All of the above. Flag this Question Question 2 Which of the following would create a demand for dollars? When foreign countries buy U.S. exports When the U.S. buys imports from other countries. When the U.S. citizens travel abroad. When U.S. imports are greater than exports. Flag...
One function of the foreign exchange market is to convert the currency of one country into...
One function of the foreign exchange market is to convert the currency of one country into the currency of another. A second function of the foreign exchange market is to provide insurance against foreign exchange risk. The most common approach to exchange rate forecasting is fundamental analysis. This relies on variables such as money supply growth, inflation rates, nominal interest rates, and balance-of-payment positions to predict future changes in exchange rates. Identify a country outside of the U.S. and its...
Your firm is based in the U.S. and one of your primary suppliers is located in...
Your firm is based in the U.S. and one of your primary suppliers is located in the Czech Republic. One way for your firm to transfer foreign exchange risk (associated with your firm’s accounts payable) to your supplier is to a. sell the Czech supplier a futures contract b. increase the price of the merchandise c. have the invoice denominated in dollars d. both a and b 1.A foreign exchange rate may be defined as a. the amount of a...
true or false: ) 1. Like gold standard, the currency board (foreign exchange rate policy) is...
true or false: ) 1. Like gold standard, the currency board (foreign exchange rate policy) is doomed to fail. (2) You are to buy ¥200m with Australian dollars through a forward contract maturing in 6 months. The forward price is F6(¥/A$)=100. If the spot rate at the maturity is S6(¥/A$)=80. You have a loss in the forward trading. (3) For euro to become a world currency, it is necessary that the eurozone countries run long-term trade deficits. (4) For a...
TRUE FALSE. If false CORRECT the wrong word/words An increase in the nominal exchange rate ($...
TRUE FALSE. If false CORRECT the wrong word/words An increase in the nominal exchange rate ($ per Euro) will make the dollar less expensive to foreigners If iD= 10% and iF = 5%, for investors to be indifferent between holding both one year financial assets, they should expect expect that over the next year the domestic currency will appreciate. A trade deficit implies that that country will require a surplus in the financial account compensating that deficit. An increase in...
true or false ? 1) Since the global financial crisis of 2008-2009, the Chinese renminbi (yuan)...
true or false ? 1) Since the global financial crisis of 2008-2009, the Chinese renminbi (yuan) has become the most widely traded currency with the U.S. dollar surpassing the euro, yen, and pound as dollar trading pairs. 2) Swap and forward transactions account for an insignificant portion of the foreign exchange market. 3) The European and American terms for foreign currency exchange are square roots of one another. 4) When the cross rate for currencies offered by two banks differs...