EXCHANGE COSTS: THE GLOBAL HYPERLINK
1 ) The exchange rate is a:
A)Opportunity cost at which goods happen to be produced locally.
B)Balance-of-trade ratio of one country to a different.
C)Price of one country's currency portrayed in terms of another country's forex.
D)Amount of currency that can be acquired with one particular ounce of gold.
Answer: C Type: Complex Understanding Web page: 437
2 . A great exchange level is:
A)Always set. C)The selling price of one forex in terms of an additional.
B)Tied to the value of platinum. D)All from the above.
Answer: C Type: Basic Understanding Site: 437
FOREIGN-EXCHANGE MARKET SEGMENTS
three or more. The U. S. with regard to foreign currency presents:
A)A demand for U. S. dollars.
B)A supply of U. S. dollars.
C)The foreign demand for U. T. exports.
D)A point of disequilibrium in the foreign-exchange market.
Answer: W Type: Simple Understanding Web page: 437
4. The U. T. demand for foreign currency arises from speculation and the:
A)U. S i9000. demand for overseas goods, companies, and monetary assets.
B)Foreign with regard to United States merchandise, services, and financial property.
C)Foreign demand for Us holdings of gold.
D)Supply of products and companies from the Us.
Solution: A Type: Description Page: 437
your five. The demand intended for dollars inside the foreign-exchange marketplace:
A)Is represented with a point in a diagram of foreign-exchange source and demand.
B)Depends in part within the foreign demand for U. T. goods.
C)Depends on U. S i9000. demand for foreign goods and services.
D)Is precisely the dollars demanded for the amount of foreign currency delivered.
Answer: B Type: Basic Understanding Page: 437