United States Dollar

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Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) In the economic field of agency theory, which one of the following is viewed as an agent with the principals who are most importantly the firm's shareholders? A) managers B) employees C) attorneys D) suppliers 2) The cash manager at AmFlex Company needs to buy 1,000,000 British pounds to pay a British supplier. A currency broker quotes him a bid-ask rate of ₤.4865-.5116/US$. What will be the dollar cost of the 1,000,000 pounds? A) $486,618 B) $1,954,652 C) $511,587 D) $2,055,499 3) In determining why a firm becomes multinational there are many reasons. One reason is that the firm is a market…show more content…
dollar vs the Japanese yen decreased from 105 last year to 95 currently and is expected to fall still further in the coming year. Other things equal U.S. ________ to/from Japan think this is good news and U.S. ________ to/from Japan think this is bad news. A) importers; exporters B) exporters; importers C) exporters; exporters D) importers; importers 15) If the current exchange rate is 113 Japanese yen per U.S. dollar, the price of a Big Mac hamburger in the United States is $3.41, and the price of a Big Mac hamburger in Japan is 280 yen, then other things equal, the Big Mac hamburger in Japan is ________. A) not enough information to determine if the price is appropriate or not B) over priced C) correctly priced D) under priced 14) 15) Use the table to answer following question. Yen: Spot and Forward (¥/$) Mid Rates Bid Ask Spot 129.87 129.82 129.92 Forward Rates 1 month 129.68 -20 -18 6 months 128.53 -136 -132 Swaps 2 year 117.65 1232 1212 3 year 115.50 1452 1422 Pound: Spot and Forward ($/£) Mid Rates Bid Ask 1.4484 1.4481 1.4487 1.4459 1.4327 1.4250 1.4225 -26 -160 -238 -265 -24 -154 -230 -253 16) 16) Refer to the table above. According to the information provided in the table, the 6-month yen is selling at a forward ________ of approximately ________ per annum. (Use the mid
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