09 - 09 Student 1 Suppose the U.S dollar substantially depreciates against the Japanese yen The change in exchange rate A Can have significant economic

09 - 09 Student 1 Suppose the U.S dollar substantially...

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09Student: ___________________________________________________________________________ 1.Suppose the U.S. dollar substantially depreciates against the Japanese yen. The change in exchange rate A. Can have significant economic consequences for U.S. firms.B. Can have significant economic consequences for Japanese firms.C. Can have significant economic consequences for both U.S. and Japanese firms.D. None of the above 2.Suppose the U.S. dollar substantially depreciates against the Japanese yen. The change in exchange rate 3.The link between a firm's future operating cash flows and exchange rate fluctuations: 4.When the Mexican peso collapsed in 1994, declining by 37 percent, 5.When exchange rates change, A. U.S. firms that produce domestically and sell only to domestic customers will be unaffected.B.U.S. firms that produce domestically and sell only to domestic customers can be affected if they compete against imports.C. U.S. firms that produce domestically and sell only to domestic customers will be affected, but only if they borrow in foreign currency to finance their domestic operations.D. Both a) and b)6.When exchange rates change, 7. Two studies found a link between exchange rates and the stock prices of U.S. firms,

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