Chapter 21: International Finance
Multiple Choice Questions
EXCHANGE RATES: THE GLOBAL LINK
1. The exchange rate is the: A) Opportunity cost at which goods are produced domestically. B) Balance-of-trade ratio of one country to another. C) Price of one country's currency expressed in terms of another country's currency. D) Amount of currency that can be purchased with 1 ounce of gold.
Answer: C Type: Complex Understanding Page: 437
2. An exchange rate is: A) Always fixed. C) The price of one currency in terms of another. B) Tied to the price of gold. D) All of the above.
Answer: C Type: Basic Understanding Page: 437
FOREIGN-EXCHANGE MARKETS
3. The U.S. demand for foreign currency
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dollars and a demand for a foreign currency. C) Demand for U.S. dollars and a supply of a foreign currency. D) Demand for U.S. dollars and a demand for a foreign currency.
Answer: B Type: Basic Understanding Page: 437
13. Changes in the value of the euro affect the economies of: A) Only those countries using the euro as currency. B) All European countries but there would be no significant impact on countries outside Europe. C) Potentially the entire world. D) There would be no significant impact on any economies as long as exchange rates are flexible.
Answer: C Type: Basic Understanding Page: 437
14. When the exchange rate between the U.S. dollar and the Japanese yen is $1=100 yen, this is an indication that: A) It would take 100 yen to purchase $1. C) The dollar is depreciating compared to the yen. B) The yen is stronger than the U.S. dollar. D) All of the above.
Answer: A Type: Basic Understanding Page: 438
15. A change in the exchange rate for a country's currency alters the prices of: A) Exports only. C) Both exports and imports. B) Imports only. D) Only domestic goods and services.
Answer: C Type: Basic Understanding Page: 438
16. An increase in the price of the U.S. dollar in terms of euros will cause, ceteris paribus: A) A lower European inflation rate. B) Higher interest rates in the United States. C) European goods to be cheaper to residents of the United States. D) All of the
A collective term for the economic, occupational, and educational factors that influence an individual's relative position in society defines _____
During reconstruction, the meaning of freedom suited many different types of interpretation; the perception of freedom between former slaves and their slaves masters were very contradictory. To begin with, African-Americans had suffered severe abuse over those years of slavery, so to them, the meaning of freedom was basically a hope that in the future, they won’t experience all kind of punishment and exploration that they have been experienced so far. Besides that, formers slaves were demanding equal civil and political rights. In the same way, they valued their freedom by establishing their own schools and churches, reuniting families that were separated under
It gives the opportunity to provide structured feedback and reflection and recognise ay achievements as well as identify any performance issues.
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_____ Psychology and "common sense" lead to the same conclusions about behavior and mental processes.
Nestled in Southern Indiana just west of Louisville, Kentucky and south of Indianapolis, Indiana is Dubois County, Indiana. Dubois County is comprised of the towns of Birdseye, Ferdinand, Holland, Huntingburg and Jasper. Of those towns, Jasper is the largest and is the county seat (Kelly School of Business, 2014). Over fifty-two percent of the population consists of adults ranging from 25-64 years of age (Kelly School of Business, 2014). The leading cause of mortality in this county is heart disease, cancer, suicide and injuries (Memorial Hospital and Health Care Center & Dubois County Health Department, 2011).
If they move and have to go to a new school, make new friends ect. As a parent or teacher you can comfort them and let them get used to where they are and not feel nervous or scared about being somewhere new and unfamiliar and help them to make friends, by asking them to join in activities, join an after school club or an out of school club where they will meet new people and get to know
Embrace new technologies to improve efficiency, maintain environmental stewardship through green practices and sustainable operations, support continuous improvement of the business processes, develop employees’ capability, and provide excellent customer services.” (Hillsborough County, 2015)
After completing the seven habits profile, my lowest categories were emotional bank account, life balance, be proactive, begin with the end in mind, put first things first, seek first to understand, and sharpen the saw.
Rate = Canadian rate Mexican pesos? Japanese Yen ? French Francs ?
We are living in market society, which is so different from previous societies. In market society, the whole of society is a system of self-regulating market (Polanyi 43). In order to make the market society function, people need to think and act in certain ways(Polanyi 68). For example, people in market society think that economic relations are much more important than interpersonal relations (Polanyi 44). Polanyi calls the emergence of market society “the great transformation”. My thesis statement is that the shift to market society is a
After reviewing the Balance sheet I have a concern regarding the Current and short term liabilities. Creditors/ trade payable is payment yet to be made for goods already received, if this continues to rise then it will effect the business profit and less stock will have to be ordered so repayments can be made. Bank overdrafts also continued to rise and in the long-term the business will be paying greater interest, which will again eat into the profit. Both increased quite a great deal from the last year-end. If this continues then the business will get into bad debts and owe too much that it will end up having to sale its assets to survive. Finally I can see that due to the above issues and other issues the net current assets/ working capital has decreased so therefore the business is less value then it was a year ago. If the business is worth £1 million now, this could soon decrease within another year.
This paper aims to compare the Japanese Yen against the US Dollar over a five year period starting from 2005 till 2010. The exchange traded fund for Japanese Yen shall also be discussed in the paper and afterwards an analysis of both the currencies shall be presented. There are different factors that influence the exchange rate differences between any two chosen currencies. The effects produced by these different exchange rates can be of quite different intensity. The most common elements that have an impact on exchange rate difference include economic factors, socio political factors and other behavioral or technical factors also. The macroeconomic factors such as growth of a country, employment rate, gross domestic product etc. All
I believe that the price of U.S postage stamps and the percent of change will
Hogan (2015) studied the relationship between the Japanese yen and to U.S. dollar exchange rate. Over the past two decades, the yen has changed drastically. By 2011, the yen to dollar value was received to be 80 yen to/1 dollar. Hogan (2015) reviewed a simple example of how the U.S. to yen-dollar rates affects the production and selling of goods. In this example, Hogan (2015) took two Japanese automobile manufacturers. Company A in his experiment built its cars in Japan and exported them to the U.S. while company B has a factory in the U.S. and built their cars in the U.S. He found that if it cost company A 1.2 million yen (10,000 U.S. dollars) at a rate of 120 yen/ to 1 dollar and it costs company B 10,000 dollars to make the same model. Both companies sell their cars for 15,000 dollars and both would in return make a 5,000 dollar profit. However this would all change if the value of the yen strengthened. Once the value of yen strengthens it will cost more U.S. dollars to make or purchase a product. So Hogan (2015) altered his experiment and found that if the yen value strengthened and the yen to dollar ratio became 100 yen/ 1 dollar and it still cost company A 1.2 million yen to produce a car it will cost