Question 1

__________ means a drop in the foreign exchange value of a floating currency.

Accepted Answer

A)  Depreciation 
B)  Devaluation 
C)  Appreciation 
D)  Revaluation 
A)  Depreciation 
B)  Devaluation 
C)  Appreciation 
D)  Revaluation A

Question 2

In spot transactions bank notes such as currency changes for individuals are exchanged for each other instantaneously over the counter.

Accepted Answer

A) True 
 B)False  True

Question 3

If the government does not interfere in the valuation of its currency, it is classified as a floating or flexible exchange rate system.

Accepted Answer

A) True 
 B)False  True

Question 4

A bid is also known as an offer.

Accepted Answer

A) True 
 B)False

Question 5

When the par value is reduced, this is as a result of devaluation of a currency.

Accepted Answer

A) True 
 B)False

Question 6

If the Iraq government regulates the rate at which local currency is exchanged for other countries this system is classified as a

Accepted Answer

A)  fixed exchange rate system. 
B)  flexible exchange rate system. 
C)  pegged exchange rate system. 
D)  foreign exchange rate system. 
A)  fixed exchange rate system. 
B)  flexible exchange rate system. 
C)  pegged exchange rate system. 
D)  foreign exchange rate system.

Question 7

The peg system functions between which two systems?

Accepted Answer

A)  fixed and float-rate systems 
B)  real and nominal-rate systems 
C)  independent and dependent-rate systems 
D)  fixed and managed-rate systems 
A)  fixed and float-rate systems 
B)  real and nominal-rate systems 
C)  independent and dependent-rate systems 
D)  fixed and managed-rate systems

Question 8

The foreign exchange rate is the price of one currency expressed in terms of another currency.

Accepted Answer

A) True 
 B)False

Question 9

Depreciation is a drop in foreign exchange value of a floating currency.

Accepted Answer

A) True 
 B)False

Question 10

In most countries ______________ is by far the largest component of total international liquidity.

Accepted Answer

A)  foreign currency 
B)  the U.S. dollar 
C)  international currency 
D)  the peso 
A)  foreign currency 
B)  the U.S. dollar 
C)  international currency 
D)  the peso

Question 11

A _________ is the rate at which a bank is willing to exchange one currency for another at some specified future date.

Accepted Answer

A)  forward rate 
B)  contract rate 
C)  fixed rate 
D)  none of the above 
A)  forward rate 
B)  contract rate 
C)  fixed rate 
D)  none of the above

Question 12

Foreign exchange rate refers to the money of a foreign country, such as foreign currency bank balances, banknotes, checks, and drafts

Accepted Answer

A) True 
 B)False

Question 13

Appreciation means a drop in the foreign exchange value of a floating currency.

Accepted Answer

A) True 
 B)False

Question 14

The managed float is also known as "dirty management."

Accepted Answer

A) True 
 B)False

Question 15

Double-entry bookkeeping means every debit or credit in the account is also represented as a credit or debit somewhere else.

Accepted Answer

A) True 
 B)False

Question 16

A soft or weak currency is one that is anticipated to devaluate or depreciate relative to major trading currencies.

Accepted Answer

A) True 
 B)False

Question 17

When a company needs foreign exchange to be paid to foreign companies it can use either customer drafts or international wire transfers through a bank

Accepted Answer

A) True 
 B)False

Question 18

The real exchange rate is the exchange rate after deducting an inflation factor.

Accepted Answer

A) True 
 B)False

Question 19

A foreign exchange rate is the price of one currency expressed in terms of another currency (or gold)

Accepted Answer

A) True 
 B)False

Question 20

In the foreign exchange market, price information is readily available through computer networks. It is thus difficult to compare prices in different markets.

Accepted Answer

A) True 
 B)False

__________ means a drop in the foreign exchange value of a floating currency.

In spot transactions bank notes such as currency changes for individuals are exchanged for each other instantaneously over the counter.

If the government does not interfere in the valuation of its currency, it is classified as a floating or flexible exchange rate system.

A bid is also known as an offer.

When the par value is reduced, this is as a result of devaluation of a currency.

If the Iraq government regulates the rate at which local currency is exchanged for other countries this system is classified as a

The peg system functions between which two systems?

The foreign exchange rate is the price of one currency expressed in terms of another currency.

Depreciation is a drop in foreign exchange value of a floating currency.

In most countries ______________ is by far the largest component of total international liquidity.

A _________ is the rate at which a bank is willing to exchange one currency for another at some specified future date.

Foreign exchange rate refers to the money of a foreign country, such as foreign currency bank balances, banknotes, checks, and drafts

Appreciation means a drop in the foreign exchange value of a floating currency.

The managed float is also known as "dirty management."

Double-entry bookkeeping means every debit or credit in the account is also represented as a credit or debit somewhere else.

A soft or weak currency is one that is anticipated to devaluate or depreciate relative to major trading currencies.

When a company needs foreign exchange to be paid to foreign companies it can use either customer drafts or international wire transfers through a bank

The real exchange rate is the exchange rate after deducting an inflation factor.

A foreign exchange rate is the price of one currency expressed in terms of another currency (or gold)

In the foreign exchange market, price information is readily available through computer networks. It is thus difficult to compare prices in different markets.

International Business in an Age of Globalization

International Trade Theory and Application

Foreign Direct Investment Theory and Application

The Multinational Enterprise

Country Competitiveness

The Cultural Environment

The Political and Legal Environment

International Economic Integration and Institutions

International Entry Strategies

Mne Organization Structure and Design

Building and Managing Global Strategic Alliances Gsas

Managing Global Research and Development Rd

Financial Management for Global Operations

International Accounting for Global Operations

Global Marketing and Supply Chain

Global Human Resource Management

Internet and Global E-Commerce

Social Responsibility and Corruption in the Global Marketplace

International Entrepreneurship

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Exam 9: The International Monetary System and Financial Markets

__________ means a drop in the foreign exchange value of a floating currency.

In spot transactions bank notes such as currency changes for individuals are exchanged for each other instantaneously over the counter.

If the government does not interfere in the valuation of its currency, it is classified as a floating or flexible exchange rate system.

A bid is also known as an offer.

When the par value is reduced, this is as a result of devaluation of a currency.

If the Iraq government regulates the rate at which local currency is exchanged for other countries this system is classified as a

The peg system functions between which two systems?

The foreign exchange rate is the price of one currency expressed in terms of another currency.

Depreciation is a drop in foreign exchange value of a floating currency.

In most countries ______________ is by far the largest component of total international liquidity.

A _________ is the rate at which a bank is willing to exchange one currency for another at some specified future date.

Foreign exchange rate refers to the money of a foreign country, such as foreign currency bank balances, banknotes, checks, and drafts

Appreciation means a drop in the foreign exchange value of a floating currency.

The managed float is also known as "dirty management."

Double-entry bookkeeping means every debit or credit in the account is also represented as a credit or debit somewhere else.

A soft or weak currency is one that is anticipated to devaluate or depreciate relative to major trading currencies.

When a company needs foreign exchange to be paid to foreign companies it can use either customer drafts or international wire transfers through a bank

The real exchange rate is the exchange rate after deducting an inflation factor.

A foreign exchange rate is the price of one currency expressed in terms of another currency (or gold)

In the foreign exchange market, price information is readily available through computer networks. It is thus difficult to compare prices in different markets.

International Business in an Age of Globalization

International Trade Theory and Application

Foreign Direct Investment Theory and Application

The Multinational Enterprise

Country Competitiveness

The Cultural Environment

The Political and Legal Environment

International Economic Integration and Institutions

International Entry Strategies

Mne Organization Structure and Design

Building and Managing Global Strategic Alliances Gsas

Managing Global Research and Development Rd

Financial Management for Global Operations

International Accounting for Global Operations

Global Marketing and Supply Chain

Global Human Resource Management

Internet and Global E-Commerce

Social Responsibility and Corruption in the Global Marketplace

International Entrepreneurship

Filters