Chapter 18 PQ

Chapter 18 PQ - Exam Name_ MULTIPLE CHOICE. Choose the one...

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Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question 1) Under the Bretton Woods exchange rate system, set up in 1944, which of the following was true? A) Foreign central banks could sell their dollars to the American government in exchange for gold. B) Americans could sell their dollars to the American government in exchange for silver. C) Americans could sell their dollars to foreign central banks in exchange for gold. D) Americans could sell their dollars to the American government in exchange for gold. 1) 2) The Molson Breweries Inc. owned the Montreal Canadians. Most of the revenue generated by the team was received in Canadian dollars while its expenses were in U.S. dollars. How would a depreciation of the Canadian dollar affect the team's revenues and its costs? A) revenues rise; costs fall B) revenues rise; costs rise C) revenues fall; costs fall D) revenues fall; costs rise 2) 3) If the exchange rate between the U.S. dollar and the Indian rupee (rupees per dollar) is greater than the relative purchasing power between the two countries, which of the following would be true? A) There are opportunities for profit by purchasing goods in India and then selling them in the U.S. B) There are no arbitrage opportunities for which traders can take advantage. C) Purchasing power parity predicts that the value of the dollar will rise as traders take
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Chapter 18 PQ - Exam Name_ MULTIPLE CHOICE. Choose the one...

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