TBChapter_12_The_Foreign_Exchange_Market[1]

TBChapter_12_The_Foreign_Exchange_Market[1] - Chapter 12...

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Chapter 12 The Foreign Exchange Market 12.1 Multiple Choice 1) When the value of the British pound changes from $1.50 to $1.25, then A) the pound has appreciated and the dollar has appreciated. B) the pound has depreciated and the dollar has appreciated. C) the pound has appreciated and the dollar has depreciated. D) the pound has depreciated and the dollar has depreciated. Answer: B 2) When the value of the dollar changes from 0.5 to 0.75, then A) the pound has appreciated and the dollar has appreciated. B) the pound has depreciated and the dollar has appreciated. C) the pound has appreciated and the dollar has depreciated. D) the pound has depreciated and the dollar has depreciated. Answer: C 3) When the exchange rate changes from 0.9 euros to the dollar to 1.0 euros to the dollar, then A) the euro has appreciated and the dollar has appreciated. B) the euro has depreciated and the dollar has appreciated. C) the euro has appreciated and the dollar has depreciated. D) the euro has depreciated and the dollar has depreciated. Answer: B 4) When the exchange rate changes from 1.0 euros to the dollar to 0.9 euros to the dollar, then A) the euro has appreciated and the dollar has appreciated. B) the euro has depreciated and the dollar has appreciated. C) the euro has appreciated and the dollar has depreciated. D) the euro has depreciated and the dollar has depreciated. Answer: C 5) If the dollar _____ from 0.8 euros per dollar to 1.2 euros per dollar, the euro _____ from 1.25 dollars to 0.83 dollars per euro. A) appreciates; appreciates B) appreciates; depreciates C) depreciates; depreciates D) depreciates; appreciates Answer: B 152 6) If the dollar appreciates from 0.8 euros per dollar to 1.2 euros per dollar, the euro depreciates from _____ dollars to _____ dollars per euro. A) 1.25; 0.83 B) 0.83; 1.25 C) 0.83; 1.66 D) 1.25; 1.66
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Answer: A 7) If the dollar depreciates relative to the Swiss franc, A) Swiss chocolate will become more expensive in the United States. B) American computers will become less expensive in Switzerland. C) Swiss chocolate will become cheaper in the United States. D) both (A) and (B) of the above. Answer: D 8) If the dollar appreciates relative to the Swiss franc, A) Swiss chocolate will become more expensive in the United States. B) American computers will become less expensive in Switzerland. C) Swiss chocolate will become cheaper in the United States. D) both (A) and (B) of the above. Answer: C 9) When the exchange rate for the euro changes from $0.80 to $1.00 then, holding everything else constant, A) the euro has appreciated and German cars sold in the United States become more expensive. B) the euro has appreciated and German cars sold in the United States become less expensive.
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TBChapter_12_The_Foreign_Exchange_Market[1] - Chapter 12...

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