intb3353quiz6 - 1. All of the following drive changes in...

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1. All of the following drive changes in the foreign exchange market except: Student Response Value Correct Answer a. country’s desire to import 0% b. Government surplus 100% c. Productivity differences 0% d. Expected inflation 0% e. Real, risk adjusted interest rates 0% 2. The British pound is worth 2.3198 Swiss francs and the Mexican peso is worth 0.14512 Swiss francs. How many pesos is the British pound worth? Student Response Value Correct Answer a. 0.0626 0% b. 0.3354 0% c. 2.9818 0% d. 15.985 100% e. none of the above 0% 3. Under a flexible exchange rate system, countries allow their currency to: Student Response Value Correct Answer a. fluctuate so as to clear the exchange market 100% b. be fixed at a later date 0% c. be pegged to the gold price 0% d. none of the above 0% 4. When anticipated inflation increases in a country, investors will Student Response Value Correct Answer a. Invest more in that country and push the currency up 0% b. Pull out their investments from that country and cause the currency to devaluate
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This note was uploaded on 04/11/2008 for the course INTB 3353 taught by Professor Prodan during the Spring '08 term at University of Houston.

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intb3353quiz6 - 1. All of the following drive changes in...

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