08 - International Business 8e(Griffin\/Pustay Chapter 8 Foreign Exchange and International Financial Markets 1 The rising value of the Canadian dollar

08 - International Business 8e(Griffin/Pustay Chapter 8...

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International Business, 8e (Griffin/Pustay)Chapter 8 Foreign Exchange and International Financial Markets 1) The rising value of the Canadian dollar relative to the U.S. dollar has which of the following effects? A) Canadian imports to the U.S. are down.B) Canadian vacationers pay higher costs for trips to the U.S.C) Canadian consumers pay higher prices for U.S.-made goods.D) Canadian retailers in border towns lose customers to U.S. stores.Answer: DDiff: 2AACSB: Dynamics of the global economySkill: ConceptObjective: 1Learning Outcome: Describe the functions of the foreign exchange market 2) What most likely happens when the price of yen falls? 3) Which of the following is notan example of a participant in the foreign exchange market? 1
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4) A call option ________. 5) ________ is a commodity that consists of currencies issued by countries other than one's own. A) EurozoneB) Foreign exchangeC) Floating exchangeD) International monetary fundAnswer: BDiff: 1Skill: ConceptObjective: 1Learning Outcome: Describe the functions of the foreign exchange market6) If the British pound is selling at $1.5212 spot on September 3, and at a 90-day forward rate of $1.5203, then ________.
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