# Currency and Euro-pound Exchange Rate

1315 Words May 12th, 2011 6 Pages
25.3.44. When Honda, a Japanese auto maker, built a factory in Ohio,
A. It was engaged in foreign direct investment
B. It was engaged in portfolio investment
C. It was engaged in a cross-border acquisition
D. None of the above.

26.3.45. Government controlled investment funds, known as sovereign wealth funds,
A. Are playing a less-important role in international finance following the end of the fixed exchange rate era
B. Are mostly domiciled in Asian and Middle Eastern countries.
C. Are usually are responsible for converting trade surpluses and oil revenues into foreign exchange reserves.
D. None of the above

27.3.46. Foreign direct investment (FDI) occurs
A. when an investor acquires a measure of control of a foreign
May want to widen his bid-ask spread by raising his ask price
B. May want to lower his bid price
C. May want to lower his ask price
D. None of the above

40.5.30. A dealer in British pounds who thinks that the pound is about to depreciate
A. May want to widen his bid-ask spread by raising his ask price
B. May want to lower his bid price and his ask price
C. May want to lower his ask price
D. None of the above

41.5.31. A dealer in pounds who thinks that the exchange rate is about to increase in volatility
A. May want to widen his bid-ask spread
B. May want to decrease his bid-ask spread
C. May want to lower his ask price
D. None of the above

42.5.32. Using the table shown, what is the spot cross-exchange rate between pounds and euro?
A. €1.00 = ≤0.75
B. ≤1.33 = €1.00
C. ≤1.00 = €0.75
D. None of the above

43.5.33. The dollar-euro exchange rate is \$1.25 = €1.00 and the dollar-yen exchange rate is ×100 = \$1.00. What is the euro-yen cross rate?
A. ×125 = €1.00
B. ×1.00 = €125
C. ×1.00 = €0.80
D. None of the above

44.5.34. Suppose you observe the following exchange rates: €1 = \$1.25; ≤1 = \$2.00. Calculate the euro-pound exchange rate.
A. €1 = ≤1.60
B. €1 = ≤0.625
C. €2.50 = ≤1
D. €1 = ≤2.50

45.5.35. The AUD/\$ spot exchange rate is AUD1.60/\$ and the SF/\$ is SF1.25/\$. The AUD/SF cross exchange rate is:
A. 0.7813
B. 2.0000
C. 1.2800
D. 0.3500

46.5.36. Suppose you observe the following exchange rates: €1 = \$1.50; ≤1 =