Which of the following groups would NOT participate in the foreign exchange market? Question 9 options: Mexican investors buying part-ownership of a French company Canadian parents purchasing children's toys that were manufactured in China. U.S.-based firms trading cars that are manufactured in Canada, China, South Korea, and Germany for sale in the United States. American tourists visiting Turkey.

Which of the following groups would NOT participate in the foreign exchange market? Question 9 options: Mexican investors buying part-ownership of a French company Canadian parents purchasing children's toys that were manufactured in China. U.S.-based firms trading cars that are manufactured in Canada, China, South Korea, and Germany for sale in the United States. American tourists visiting Turkey.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter36: Exchange Rates And Financial Links Between Countries

Section: Chapter Questions

Problem 18E

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Critically examine the FIVE types of foreign exchange market participants and identify their motives for buying or selling foreign exchange
Which of the following is impossible for a country to choose simultaneously? Question 17 options: fixed exchange rate, free capital flows, and an independent monetary policy flexible exchange rate, free capital flows, and an independent monetary policy fixed exchange rate, capital controls, and an independent monetary policy fixed exchange rate, free capital flows, and a monetary policy subject to keeping the exchange rate unchanged.
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Which of the below is NOT a factor determining the demand for a currency such as the U.S. dollar? Group of answer choices All else equal, the greater demand for a country's exports will cause its currency to appreciate. All else equal, foreign capital is attracted by emerging economies with unstable political history and greater volatility in their financial and stocks markets. All else equal, higher real interest rates offered in the U.S. will make it lucrative for foreign investors to purchase U.S. bonds that pay a higher interest rate. Foreigners will need to purchase U.S. dollars to purchase U.S. treasuries. A country with a booming economy will often have a currency that is appreciating. Strong growth presents economic investment opportunities and attracts financial capital from other countries. If the country in question is the U.S. then the infow of foreign financial capital must be converted to U.S. dollars to be invested in the U.S.
China and India are trading partners, and there are international savings flows between the two countries. China’s currency is the yuan and India’s currency is the rupee. If interest rates in China begin to rise relative to those in India, which of the following changes can we expect to see in the Indian foreign exchange market? Selected Answer: Demand for the Chinese yuan would fall. Answers: Demand for the Chinese yuan would fall. Demand for the Indian rupee would rise. Supply of the Indian rupee would fall. Supply of the Chinese yuan would fall.
The supply of dollars in the foreign exchange market is likely to be upward sloping because as the price of a dollar (the exchange rate) rises ___________________________________. Group of answer choices A) foreigners demand more American goods because these goods have become less expensive to foreign consumers B) foreigners demand fewer non-American goods because these goods have become more expensive to foreign consumers C) Americans demand fewer foreign goods because these goods have become more expensive to American consumers D) Americans demand more foreign goods because these goods have become less expensive to American consumers
Which of the following will appear on the financial account in the US balance of payments A. U.S. export of wheat to the Philippines B. U.S. import of oil from Venezuela. C. the purchase of shares of a Swiss bank by an American bank. D. all of the above
Identify firms’ strategic responses that managers adopt in order to deal with foreign currency exchange rate movements.
Government of the countries invites the foreign investors to invest foreign currency in their country by establishing manufacturing units, service stations and many more. Foreign investment helps the economy to boost up their forex reserves, and maintain balance of payment position. Comment on the international trade policies of Government of India having impact on foreign exchange reserves and balance of payment.

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	Mexican investors buying part-ownership of a French company
	Canadian parents purchasing children's toys that were manufactured in China.
	U.S.-based firms trading cars that are manufactured in Canada, China, South Korea, and Germany for sale in the United States.
	American tourists visiting Turkey.