A) have no separate legal tender. B) are pegged to the euro. C) are pegged to the dollar. D) are fixed against a single currency. A) have no separate legal tender. B) are pegged to the euro. C) are pegged to the dollar. D) are fixed against a single currency.

A) contract derived from a spot market rate. B) fixed exchange rate. C) flexible exchange rate. D) contract between firms for foreign currency. A) contract derived from a spot market rate. B) fixed exchange rate. C) flexible exchange rate. D) contract between firms for foreign currency.

Exam 13: Introduction to Exchange Rates and the Foreign Exchange Market

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Changes in exchange rates are usually expressed in percentage terms. The percentage rate of appreciation for one currency will be close to the rate of depreciation for the other nation whenever:

(Multiple Choice)

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Question 61

Eurozone countries:

(Multiple Choice)

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Question 62

In international finance, speculation involves:

(Multiple Choice)

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Question 63

Suppose $1 = 120 yen in New York, $1 = 2 euros in London, and one euro = 75 yen in Tokyo. A speculator with $1 million would get a profit of _____ by engaging in a 3-point arbitrage.

(Multiple Choice)

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Question 64

The equation E_$/£ = 2 means that:

(Multiple Choice)

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Question 65

Foreign exchange swaps involve:

(Multiple Choice)

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Question 66

If, in 2011, $1 = 1.5 euros, and in 2016, $1 = 0.9 euros, which of the following statements would be TRUE?

(Multiple Choice)

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Question 67

In July 2015, the spot rate is $1 exchanging for 1,250 won. You are convinced that the won will appreciate by the end of the year. How might you profit if your hunch is correct?

(Short Answer)

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Question 68

(Table: Currency Values I) If you want, ceteris paribus, to invest dollars in 2015 and then convert them back into dollars in 2016, which is the best currency to invest in?

(Multiple Choice)

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Question 69

Is it possible to engage in arbitrage under the following scenario? The exchange rate in New York is E = $1.25/euro, and it is E = $1.35/euro in London. Explain how you would do it.

(Short Answer)

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Question 70

If a nation's currency buys fewer units of a foreign currency today than yesterday, we say the value of its currency has:

(Multiple Choice)

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Question 71

An agreement that gives one party the right to buy from or sell to another party a specified quantity of currency at a specified price would be included in which of the following transactions?

(Multiple Choice)

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Question 72

A derivative is a:

(Multiple Choice)

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Question 73

In which of the following categories would an agreement to trade currencies in pre-set amounts at a certain date in the future be included?

(Multiple Choice)

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Question 74

If the dollar-euro exchange rate on June 30, 2015, is $1.115 per euro, then the euro-dollar exchange rate would be:

(Multiple Choice)

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Question 75

The U.S. dollar's effective exchange rate since 2002 steadily weakened up to 2012, before rebounding somewhat. However, it didn't weaken as much against ALL currencies as it did against the currencies of the major developed countries (which include the pound and the euro). This could be because:

(Multiple Choice)

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Question 76

Suppose $1 = 1.5 euros in London and $1 = 1.2 euros in New York. Which of the following would be the right trade for you to make money?

(Multiple Choice)

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Question 77

Explain in your own words the effective exchange rate and why policy makers pay more attention to it than the bilateral exchange rate.

(Essay)

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Question 78

Some nations use a currency board to manage their currencies. How does this work?

(Multiple Choice)

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Question 79

The average of the bilateral rate changes for a nation, weighted by the importance of the trading partner, is known as the:

(Multiple Choice)

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Question 80

Showing 61 - 80 of 160

Exam 13: Introduction to Exchange Rates and the Foreign Exchange Market

Changes in exchange rates are usually expressed in percentage terms. The percentage rate of appreciation for one currency will be close to the rate of depreciation for the other nation whenever:

Eurozone countries:

In international finance, speculation involves:

Suppose $1 = 120 yen in New York, $1 = 2 euros in London, and one euro = 75 yen in Tokyo. A speculator with $1 million would get a profit of _____ by engaging in a 3-point arbitrage.

The equation E$/£ = 2 means that:

Foreign exchange swaps involve:

If, in 2011, $1 = 1.5 euros, and in 2016, $1 = 0.9 euros, which of the following statements would be TRUE?

In July 2015, the spot rate is $1 exchanging for 1,250 won. You are convinced that the won will appreciate by the end of the year. How might you profit if your hunch is correct?

(Table: Currency Values I) If you want, ceteris paribus, to invest dollars in 2015 and then convert them back into dollars in 2016, which is the best currency to invest in?

Is it possible to engage in arbitrage under the following scenario? The exchange rate in New York is E = $1.25/euro, and it is E = $1.35/euro in London. Explain how you would do it.

If a nation's currency buys fewer units of a foreign currency today than yesterday, we say the value of its currency has:

An agreement that gives one party the right to buy from or sell to another party a specified quantity of currency at a specified price would be included in which of the following transactions?

A derivative is a:

In which of the following categories would an agreement to trade currencies in pre-set amounts at a certain date in the future be included?

If the dollar-euro exchange rate on June 30, 2015, is $1.115 per euro, then the euro-dollar exchange rate would be:

The U.S. dollar's effective exchange rate since 2002 steadily weakened up to 2012, before rebounding somewhat. However, it didn't weaken as much against ALL currencies as it did against the currencies of the major developed countries (which include the pound and the euro). This could be because:

Suppose $1 = 1.5 euros in London and $1 = 1.2 euros in New York. Which of the following would be the right trade for you to make money?

Explain in your own words the effective exchange rate and why policy makers pay more attention to it than the bilateral exchange rate.

Some nations use a currency board to manage their currencies. How does this work?

The average of the bilateral rate changes for a nation, weighted by the importance of the trading partner, is known as the:

Trade in the Global Economy

Trade and Technology: The Ricardian Model

Gains and Losses From Trade in the Specific-Factors Model

Trade and Resources: the Heckscher-Ohlin Model

Movement of Labor and Capital Between Countries

Increasing Returns to Scale and Monopolistic Competition

Offshoring of Goods and Services

Import Tariffs and Quotas Under Perfect Competition

Import Tariffs and Quotas Under Imperfect Competition

Export Subsidies in Agriculture and High-Technology Industries

International Agreements: Trade, Labor, and the Environment

The Global Macroeconomy

Exchange Rates I: the Monetary Approach in the Long Run

Exchange Rates II: the Asset Approach in the Short Run

National and International Accounts: Income, Wealth, and the Balance of Payments

Balance of Payments I: the Gains From Financial Globalization

Balance of Payments II: Output, Exchange Rates, and Macroeconomic Policies in the Short Run

Fixed Versus Floating: International Monetary Experience

Exchange Rate Crises: How Pegs Work and How They Break

The Euro

Topics in International Macroeconomics

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The equation E_$/£ = 2 means that: