Question

23-) For a firm that competes internationally to sell its products, a depreciation of its domestic currency relative to markets where the firm exports goods, should eventually result in ________ sales at home and ________ sales abroad, other things equal.

Select one:

a. greater; fewer

b. fewer; greater

c. fewer; fewer

d. greater; greater

25-) Portfolio investment is capital invested in activities that are ________ rather than made for ________.

Select one:

a. long term; profit

b. control motivated; profit

c. short term; the long term

d. profit motivated; control

26-) Foreign exchange ________ earn a profit by a bid-ask spread on currencies they purchase and sell. Foreign exchange ________, on the other hand, earn a profit by bringing together buyers and sellers of foreign currencies and earning a commission on each sale and purchase.

Select one:

a. speculators; arbitrageurs

b. dealers; brokers

c. central banks; treasuries

d. brokers; dealers

Answer 1