Quiz 6 - Quiz 6 1. All of the following drive changes in...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Quiz 6 1. All of the following drive changes in the foreign exchange market except : a. A country’s desire to import b. Government surplus c. Productivity differences d. Expected inflation e. Real, risk adjusted interest rates Answer: b 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? A) 0.0626 B) 0.3354 C) 2.9818 D) 15.985 E) none of the above Ans: D 3.Under a flexible exchange rate system, countries allow their currency to: a. fluctuate so as to clear the exchange market b. be fixed at a later date c. be pegged to the gold price d. none of the above Answer: a 4. When anticipated inflation increases in a country, investors will a. Invest more in that country and push the currency up b. Pull out their investments from that country and cause the currency to devaluate c. Be indifferent towards inflation d. Expect higher returns on their existing investments Answer: b
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
5. Rank the following foreign exchange participants from largest to smallest in trading
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 3

Quiz 6 - Quiz 6 1. All of the following drive changes in...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online