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ECO 316 Week 2 Chapter 8 The Foreign-Exchange Mark
« on: Feb 13th, 2016, 11:36am » |
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- We help students in their studies - We will provide you only with currently important, excellent study papers and guides. - We will offer you plenty examination answers samples - We can offer you generous discounts program for our future cooperation - We are multi-segment team is consisted with professionals who are specialized in various fields of study - We know exactly what homework you really need and we can provide our customers with the highest quality services online - No matter how hard your homework looks, we will always find someone who can deal with it ECO 316 Week 2 Chapter 8 The Foreign-Exchange Market and Exchange Rates For downloading more course tutorials visit - http://entire-courses.com/eco-316-week-2-chapter-8-the-foreign---exchang e-market-and-exchange-rates ECO 316 Week 2 Chapter 8 The Foreign-Exchange Market and Exchange Rates This pack of ECO 316 Week 2 Chapter 8 The Foreign-Exchange Market and Exchange Rates consists of: 8.1 Multiple Choice Questions 1) Why were interest rates on U.S. Treasury securities in 1998 at their lowest levels in a generation? 2) About what percentage of the goods and services purchased by U.S. consumers, businesses, and governments in 2006 were produced by foreigners? 3) About what percentage of U.S. output was exported to foreigners in 2006? 4) Between 1965 and 2006, the percentage of U.S. output exported to foreigners 5) Between 1965 and 2006, the percentage of goods and services purchased by U.S. consumers, businesses, and governments from foreigners 6) The nominal exchange rate is 7) The daily turnover in the foreign exchange market is: A Japanese television sells for ?100,000 and a dollar is equal to ?100. What is the dollar price of the television? 9) If a British automobile sells for ?20,000 and the British pound is worth $1.50, then the dollar price of the automobile is 10) Suppose the exchange rate between India and the United States is 48 rupee per dollar while the exchange rate between China and the United States is 8 renminbi per dollar. What is the exchange rate between India and China? 11) If the United States places a trade barrier on Brazilian steel, other things equal, in the long run 12) If Americans develop a taste for Canadian maple syrup, the likely result is 13) A change in the dollar value of the British pound from $1.60 to $1.50 represents 14) When a country's nominal exchange rate appreciates, the price of 15) When a country's nominal exchange rate depreciates, the price of 16) If the Japanese yen appreciates against the U.S. dollar, 17) If the British pound depreciates against the U.S. dollar, 1 A substantial appreciation of the U.S. dollar will likely result in, all else equal, 19) Nominal exchange rates differ from real exchange rates in that nominal exchange rates 20) Suppose that a slice of pepperoni pizza costs ?1 in London and $2 in San Francisco. If the real exchange rate is one-third of a slice of U.S. pizza for one slice of British pizza, how many pounds should you receive in exchange for $1? 21) The relation between the nominal and real exchange rates is given by which of the following equations? 22) When a country's real exchange rate appreciates, 23) When a country's real exchange rate depreciates, 24) The relation between changes in the nominal and real exchange rates is given by which of the following equations? 25) A depreciating nominal exchange rate results from 26) Which of the following would cause the nominal exchange rate to depreciate? 27) Which of the following would cause the nominal exchange rate to appreciate? 2 Which of the following is NOT true of the foreign-exchange market? 29) Most foreign exchange is bought and sold 30) Which of the following is NOT a primary center of foreign-exchange trading? 31) In the foreign-exchange market, trading 32) In the spot foreign exchange market, 33) In forward transactions, 34) In the long run, exchange rates are determined by 35) If the forward exchange rate of the yen in terms of dollars is greater than the spot exchange rate, 36) If the forward exchange rate of the dollar in terms of pounds is less than the spot exchange rate, 37) Between 1973 and 2005, the dollar 3 If the price level in the United States increases more slowly than the price level in Canada, we would expect 39) If the price level in Japan increases more rapidly than the price level in Britain, we would expect 40) One of the reasons the British pound depreciated against the U.S. dollar during the late 1970s is that 41) If the rate of growth of U.S. productivity lags behind the rate of growth of productivity in most other countries, 42) If the rate of growth of U.S. productivity is higher than the rates of growth of productivity in most other countries 43) If the U.S. rate of productivity growth is less than the rate of Canadian productivity growth, then we would expect 44) One of the reasons the dollar appreciated against the British pound during the 1970s and 1980s is that 45) If U.S. consumers increase their demand for Canadian goods, 46) If U.S. consumers greatly increase their demand for Canadian moose burgers, then, holding everything else constant 47) A tariff is a 4 Trade barriers 49) If the United States puts a quota on imports of automobiles, 50) If the United States puts a tariff on the import of golf balls 51) The law of one price states that 52) An exception to the law of one price occurs if 53) If pepperoni pizzas sell for $10 in Berkeley, California, and ?10 in London, England, and the exchange rate is $1.35 = ?1, 54) If oranges sell for $100 per crate in the United States and 4000 pesos per crate in Mexico, the law of one price indicates that you should be able to exchange $1 for 55) The theory of purchasing power parity 56) The theory of purchasing power parity assumes that 57) The theory of purchasing power parity assumes that 5 According to the theory of purchasing power parity, whenever a country's price level is expected to fall relative to another country's price level, 59) Under the theory of purchasing power parity, an increase in the U.S. price level of 10% relative to the Japanese price level will result in 60) According to the theory of purchasing power parity, if the inflation rate in England is greater than the inflation rate in Japan, 61) The law of one price does not hold for 62) Differences in price levels 63) Purchasing power parity's assumption that the real exchange is constant 64) Because of shifts in preferences for domestic or foreign goods and because of the existence of trade barriers 65) Though useful, purchasing power parity does not completely explain long-run movements in exchange rates due to 66) The dollar 67) A key assumption behind the explanation of exchange rate determination in the short run is 6 Suppose that you expect during the next year the dollar will appreciate against the pound 69) Suppose the exchange rate is 10 pesos per dollar and you use $1000 to purchase a one-year Mexican bond that pays 10% interest. Next year, the exchange rate is 11 pesos per dollar. Assuming you convert your funds back to U.S. dollars, how much money will you have in one year? 70) Which of the following is the correct expression for the value of $1 invested in a foreign security for one year? 71) If you are indifferent between investing $1000 for one year in a U.S. Treasury security that has an interest rate of 5% or in a Canadian government security that has an interest rate of 8%, you must be expecting 72) When deciding between domestic and foreign financial investments, investors typically consider 73) International capital mobility refers to 74) We would not expect a Japanese financial asset and a U.S. financial asset with identical risk, liquidity, and information characteristics to have different expected returns because 75) In a graph illustrating the determination of the exchange rate that has the yen-dollar exchange rate on the vertical axis and the expected rate of return, in dollars terms, from investing in a U.S. or Japanese asset on the horizontal axis, the line representing R, the return on a U.S. asset in dollar terms, is 76) The nominal interest rate parity condition states that 77) Equilibrium occurs in the foreign exchange market when the 7 Which of the following expressions gives the nominal interest rate parity condition? 79) Which of the following expressions gives the expected rate of return on foreign assets in dollar terms? 80) If the German interest rate is 4% and the U.S. interest rate is 5%, what is the expected change in the value of the dollar in terms of the euro? 81) What would happen in the foreign exchange market if the European Central Bank raises European interest rates? 82) If the nominal interest rate parity condition is not met, 83) Which of the following expressions gives the real interest rate parity condition? 84) The soaring dollar in the early 1980s 85) If the interest rate in the United States rises 86) An increase in the expected inflation rate in the United States will 87) If foreign interest rates rise 8 If a currency's foreign exchange value is expected to fall, then 89) If foreign exchange traders become convinced that the value of the yen will rise against the dollar in the future, the likely result is that 90) In September 1992, the British government was forced to abandon efforts to stabilize the value of the pound against other European currencies because 91) The currency premium in foreign-exchange markets 92) In the expression i = if - ?EXe/EX PSY 315 Week 5 Practice Problems COM 140 CheckPoint Comprehensive Grammar PSY 211 Week 3 DQ1 ENG 125 Week 1 DQ 1 ISCOM 305 Week 4 Widget Production Executive Summary IT 241 Week 7 Checkpoint ETH 376 Week 3 DQs HIST 405 Week 6 DQ 2 World War II DBM 380 Course Design Guide Student Version 8 Set 1 ISCOM 305 Final Exam EDU 372 Week 3 DQ 1 Reinforcement and Conditioning CIS 524 Week 8 DQ 1 PSY 265 Week 4 DQ 1 and DQ 2 HIM 435 Week 1 DQs WEB 238 Week 3 Assignment ADJ 235 Week 6 Assignment Movie Review SOC 120 UoP Week 5 DQ 1 SPE 556 Week 1 Individual Assignment Personal Experience Paper HRM 240 Capstone CheckPoint QNT 273 Week 4 Individual Assignment Textbook Assignments BUS 630 Week 1 Assignment Dell Inc BIS 318 Week 2 Individual Assignment Effectiveness of Technology Paper HUM 130 Entire Course MKT 421 Week 5 Individual Environmental Factors POS 420 Week 4 Shell Complection ACC 227 Week 5 Checkpoint HIS 308 Week 2 DQ 2 MKTG 310 Week 3 Memo BUS 446 Week 2 DQs ACC 300 Week 2 Discussion Questions COLL 148 Week 6 Course Project Presentation Draft 15 Power Point Slides IT 240 Set 2 Week 8 CheckPoint Threat Categorization BUS 318 Week 2 DQs AJS 572 Week 1 DQ1 BUSN 412 Week 6 DQ 1 Organizational Design PSY 202 Week 2 Assignment My Life Past Present and Future PSY 400 Week 4 DQ 1 ECO 204 week 5 assignment Final Paper CGD 218 Week 2 DQ 2 HSM 260 Week 4 CheckPoint Financial Ratios XBCOM 275 Week 6 Assignment Knowing Your Audience Com Release LEG 500 Week 09 Discussion Question 1 and 2 PHI 105 Week 1 Assignment Philosophical Views Comparison PLEASE-ADD-OWN-IMAGES BSA 376 Week 4 Work-Related Project Analysis Part 3 CPMGT 300 Week 1 Individual Assignment Perceptions of Project Management ENG 302 Week 3 Individual paper AET 510 Week 2 DQ4 AJS 522 Week 1 Individual Assignment Expenditures and Revenues Matrix COM 425 Week 4 DQ 1 Barriers to Organizational Development BSHS 322 Week 5 Individual Journal Entries Text Exercises ACC 317 Entire Course BSHS 305 Week 3 Individual Quiz CGD 218 Week 2 DQ 1 CJA 354 Week 5 Reading Assignment Review SEC 470 Week 3 DQs AJS 562 Week 1 DQ2 SEI 300 Week 1 Individual Assignment Ch. 1 Summary ACC 349 Week 1 Assignment E2 9.1 HRM 599 Week 7 DQ 2 IT 206 Week 8 CheckPoint Pitfals to a Presentation HCA 311 Week 1 DQ 1 PSY 322 Entire Course MIS 589 Week 2 You Decide Report PSY 230 Week 4 Assignment Character Evaluation HRM 326 Week 5 Team Assignment Employee Development Plan XACC 280 Week 4 Assignment (Appendix E) Preparing a Financial Statement Worksheet POS 421 Week 1 Individual Assignment v7 MTH 213 Week 3 DQ 2 HUMN 303 Week 2 DQ 1 Greek and Roman Architectural Influences MGT 498 Week 4 Individual Assignment 3 PSYCH 550 Week 5 Learning Team Assignment Verbal Learning Paper CJA 474 Week 5 Learning Team Assignment Discussion Question ACC 300 Week 4 Individual Problem Set II P2-6A and P13-2A AET 510 Entire Course PSYCH 575 Entire Course FIN 467 Week 1 Individual Assignment Internet Article Review COM 480 Week 5 Individual Assignment Organizational Communication Analysis Part V-Reflection and Evaluation Paper HCS 435 Week 4 Conflict Between Research and Ethics Paper IT 206 Week 6 CheckPoint Analyzing Data
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