The influence of the announcement on the importer and the exporter of Country A on doing business with the international country Introduction: The price of a country’s currency that in term of the other nation’s currency is the exchange rate . The rate of exchange can be either floating or fixed. The two components of the exchange rates are the foreign currency and the domestic currency.

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Answer 1

Question

Chapter 21, Problem 9CRCT

a)

Summary Introduction

To evaluate: The influence of the announcement on the importer and the exporter of Country A on doing business with the international country

Introduction:

The price of a country’s currency that in term of the other nation’s currency is the exchange rate. The rate of exchange can be either floating or fixed. The two components of the exchange rates are the foreign currency and the domestic currency.

b)

Summary Introduction

To evaluate: The influence of the announcement on the importer and the exporter of Country A while doing business with the international country

Introduction:

The price of a country’s currency that in term of the other nation’s currency is the exchange rate. The rate of exchange can be either floating or fixed. The two components of the exchange rates are the foreign currency and the domestic currency.

c)

Summary Introduction

To evaluate: The influence of the announcement on the importer and the exporter of Country A while doing business with the international country

Introduction:

The price of a country’s currency that in term of the other nation’s currency is the exchange rate. The rate of exchange can be either floating or fixed. The two components of the exchange rates are the foreign currency and the domestic currency.

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Q1) The equilibrium exchange rate of pounds is USD1.70. At an exchange rate of USD1.72 per pound: * A) U.S. demand for pounds would exceed the supply of pounds for sale and there would be a shortage of pounds in the foreign exchange market. B) U.S. demand for pounds would be less than the supply of pounds for sale and there would be a shortage of pounds in the foreign exchange market. C) U.S. demand for pounds would exceed the supply of pounds for sale and there would be a surplus of pounds in the foreign exchange market. D) U.S. demand for pounds would be less than the supply of pounds for sale and there would be a surplus of pounds in the foreign exchange market.

QUESTION 15 When considering long-term foreign exchange fluctuations which of the following cause- effect relationships is true? options A. As inflation decreases, the real interest rate decreases and the currency weakens. B. When unemployment decreases, the local economy is stronger and the currency strengthens. C.Greater liquidity and smaller spreads lead to stronger local currency. D.Interest rate increases indicate weaker monetary policies which make a country less attractive to foreign investors and result in weaker local currencies. QUESTION 15(B) The inside market at a pure order driven exchange is 40 bid, 40.5 asked for ABC. Brokers then submit a limit buy order at 40.125, and a limit sell order at 40.425. If you then submit a small buy market order, at what price will your order be filled? options A.40 B. 40.625 C. 40.5 D.40.425 E. 40.125

Multiple-Choice Question: 1. You planned a trip to Europe far in advance, and budgeted for the trip. When you get home, you find that the trip cost more than you were expecting. How might a change in the exchange rate between Canadian dollars and the Euro (European currency) account for this difference? A. The exchange rate has become less favorable to the Canadian dollar B. The exchange rate has become more favorable to the Canadian dollar C. change in the exchange rate would not explain the difference Please explain the reason of your answer & why can't it be the others. The answer is supposed to be A.

Answer 2

Question

Chapter 21, Problem 9CRCT

a)

Summary Introduction

To evaluate: The influence of the announcement on the importer and the exporter of Country A on doing business with the international country

Introduction:

The price of a country’s currency that in term of the other nation’s currency is the exchange rate. The rate of exchange can be either floating or fixed. The two components of the exchange rates are the foreign currency and the domestic currency.

b)

Summary Introduction

To evaluate: The influence of the announcement on the importer and the exporter of Country A while doing business with the international country

Introduction:

The price of a country’s currency that in term of the other nation’s currency is the exchange rate. The rate of exchange can be either floating or fixed. The two components of the exchange rates are the foreign currency and the domestic currency.

c)

Summary Introduction

To evaluate: The influence of the announcement on the importer and the exporter of Country A while doing business with the international country

Introduction:

The price of a country’s currency that in term of the other nation’s currency is the exchange rate. The rate of exchange can be either floating or fixed. The two components of the exchange rates are the foreign currency and the domestic currency.

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Answer 3

Question

Chapter 21, Problem 9CRCT

a)

Summary Introduction

To evaluate: The influence of the announcement on the importer and the exporter of Country A on doing business with the international country

Introduction:

The price of a country’s currency that in term of the other nation’s currency is the exchange rate. The rate of exchange can be either floating or fixed. The two components of the exchange rates are the foreign currency and the domestic currency.

b)

Summary Introduction

To evaluate: The influence of the announcement on the importer and the exporter of Country A while doing business with the international country

Introduction:

The price of a country’s currency that in term of the other nation’s currency is the exchange rate. The rate of exchange can be either floating or fixed. The two components of the exchange rates are the foreign currency and the domestic currency.

c)

Summary Introduction

To evaluate: The influence of the announcement on the importer and the exporter of Country A while doing business with the international country

Introduction:

The price of a country’s currency that in term of the other nation’s currency is the exchange rate. The rate of exchange can be either floating or fixed. The two components of the exchange rates are the foreign currency and the domestic currency.

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Answer 4

Question

Chapter 21, Problem 9CRCT

a)

Summary Introduction

To evaluate: The influence of the announcement on the importer and the exporter of Country A on doing business with the international country

Introduction:

The price of a country’s currency that in term of the other nation’s currency is the exchange rate. The rate of exchange can be either floating or fixed. The two components of the exchange rates are the foreign currency and the domestic currency.

b)

Summary Introduction

To evaluate: The influence of the announcement on the importer and the exporter of Country A while doing business with the international country

Introduction:

The price of a country’s currency that in term of the other nation’s currency is the exchange rate. The rate of exchange can be either floating or fixed. The two components of the exchange rates are the foreign currency and the domestic currency.

c)

Summary Introduction

To evaluate: The influence of the announcement on the importer and the exporter of Country A while doing business with the international country

Introduction:

The price of a country’s currency that in term of the other nation’s currency is the exchange rate. The rate of exchange can be either floating or fixed. The two components of the exchange rates are the foreign currency and the domestic currency.

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Answer 5

Chapter 21, Problem 9CRCT

a)

Summary Introduction

To evaluate: The influence of the announcement on the importer and the exporter of Country A on doing business with the international country

Introduction:

The price of a country’s currency that in term of the other nation’s currency is the exchange rate. The rate of exchange can be either floating or fixed. The two components of the exchange rates are the foreign currency and the domestic currency.

b)

Summary Introduction

To evaluate: The influence of the announcement on the importer and the exporter of Country A while doing business with the international country

Introduction:

The price of a country’s currency that in term of the other nation’s currency is the exchange rate. The rate of exchange can be either floating or fixed. The two components of the exchange rates are the foreign currency and the domestic currency.

c)

Summary Introduction

To evaluate: The influence of the announcement on the importer and the exporter of Country A while doing business with the international country

Introduction:

The price of a country’s currency that in term of the other nation’s currency is the exchange rate. The rate of exchange can be either floating or fixed. The two components of the exchange rates are the foreign currency and the domestic currency.

Answer 6

Chapter 21, Problem 9CRCT

a)

Summary Introduction

To evaluate: The influence of the announcement on the importer and the exporter of Country A on doing business with the international country

Introduction:

The price of a country’s currency that in term of the other nation’s currency is the exchange rate. The rate of exchange can be either floating or fixed. The two components of the exchange rates are the foreign currency and the domestic currency.

Answer 7

Chapter 21, Problem 9CRCT

a)

Summary Introduction

To evaluate: The influence of the announcement on the importer and the exporter of Country A on doing business with the international country

Introduction:

The price of a country’s currency that in term of the other nation’s currency is the exchange rate. The rate of exchange can be either floating or fixed. The two components of the exchange rates are the foreign currency and the domestic currency.

Answer 8

b)

Summary Introduction

To evaluate: The influence of the announcement on the importer and the exporter of Country A while doing business with the international country

Introduction:

The price of a country’s currency that in term of the other nation’s currency is the exchange rate. The rate of exchange can be either floating or fixed. The two components of the exchange rates are the foreign currency and the domestic currency.

Answer 9

b)

Summary Introduction

To evaluate: The influence of the announcement on the importer and the exporter of Country A while doing business with the international country

Introduction:

The price of a country’s currency that in term of the other nation’s currency is the exchange rate. The rate of exchange can be either floating or fixed. The two components of the exchange rates are the foreign currency and the domestic currency.

Answer 10

c)

Summary Introduction

To evaluate: The influence of the announcement on the importer and the exporter of Country A while doing business with the international country

Introduction:

The price of a country’s currency that in term of the other nation’s currency is the exchange rate. The rate of exchange can be either floating or fixed. The two components of the exchange rates are the foreign currency and the domestic currency.

Answer 11

c)

Summary Introduction

To evaluate: The influence of the announcement on the importer and the exporter of Country A while doing business with the international country

Introduction:

The price of a country’s currency that in term of the other nation’s currency is the exchange rate. The rate of exchange can be either floating or fixed. The two components of the exchange rates are the foreign currency and the domestic currency.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 21.1 - What are the differences between a Eurobond and a...Ch. 21.1 - Prob. 21.1BCQ Ch. 21.2 - Prob. 21.2ACQ Ch. 21.2 - Prob. 21.2BCQ Ch. 21.2 - Prob. 21.2CCQ Ch. 21.3 - Prob. 21.3ACQ Ch. 21.3 - Prob. 21.3BCQ Ch. 21.4 - Prob. 21.4ACQ Ch. 21.4 - Prob. 21.4BCQ Ch. 21.5 - What financial complications arise in...

Solution Summary: The author evaluates the impact of the announcement on the importer and the exporter of Country A while doing business with the international country.

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