Chapter 9

7264 WordsJan 19, 201530 Pages
Chapter 9 Student: ___________________________________________________________________________ 1. A stronger Korean won, remembering that Kia cars sold in the United States are paid for in dollars, means what for Kia? A. a need to hedge Japanese yen B. a use for the Euro, a neutral currency C. less profit D. a use for gold to protect against currency fluctuations E. more profit 2. The _____________ is a market for converting the currency of one country into that of another. A. foreign exchange market B. cross-cultural interchange C. financial barter market D. monetary replacement market E. international currency spot market 3. The rate at which one currency is converted into another is called the ___________. A. replacement…show more content…
A. Gold swap B. forward gold exchange C. insurance D. spot gold exchange E. gold hedging 20. Currency speculation typically involves A. the short-term movement of funds from one currency to another in the hopes of profiting from shifts in exchange rates. B the permanent movement of funds from one currency to another in the hopes of profiting from long. term investment in a particular country. C. the simultaneous purchase of currencies from several countries in hopes of profiting from increasing economic prosperity. D. the liquidation of currency in favour of precious metals as a hedge against inflation. E. Buying low and holding currency until it stabilizes, than selling 21. What do many Canadian businesspeople NOT buy into with respect to the value of the Canadian dollar? A. A stronger dollar will result in more outbound tourism. B. A weaker dollar is good for tourists coming to Canada C. A stronger dollar means that Canadian resources are more in demand D. A weaker dollar will make imports more expensive E. A stronger dollar will reduce demand for Canada's exports. 22. When two parties agree to exchange currency and execute the deal immediately, the transaction is referred to as a ______________. A. point-in-time exchange B. temporal exchange C. spot exchange D. forward exchange E. transaction 23. When a U.S. tourist in Japan goes to a bank to convert her dollars into Japanese yen, the

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