QuizMaster

Given the foreign currency market for the Swiss franc, the supply of franc slopes upward, because as the dollar price of the franc rises ?

by
Given the foreign currency market for the Swiss franc, the supply of franc slopes upward, because as the dollar price of the franc rises ?

A. America’s demand for Swiss merchandise rises
B. America’s demand for Swiss merchandise falls
C. Switzerland’s demand for American merchandise rises
D. Switzerland’s demand for American merchandise falls

Which financial instrument provides a buyer the right to purchase or sell a fixed amount of currency at a prearranged price, within a few days to a couple of years ?

by
Which financial instrument provides a buyer the right to purchase or sell a fixed amount of currency at a prearranged price, within a few days to a couple of years ?

A. letter a credit
B. foreign currency option
C. cable transfer
D. bill of exchange

In the early eighties, the Federal Reserve pursed a tight monetary policy. All else being equal. the impact of that policy was to interest rates in the United States relative to those in Europe and cause the dollar to _______ against European currencies?

by
In the early eighties, the Federal Reserve pursed a tight monetary policy. All else being equal. the impact of that policy was to interest rates in the United States relative to those in Europe and cause the dollar to _______ against European currencies?

A. decrease; depreciate
B. decrease; appreciate
C. increase; depreciate
D. increase; appreciate

The J-curve effect refers to the observation that ?

by
The J-curve effect refers to the observation that ?

A. GDP usually decreases before it increases after a currency depreciation
B. the trade balance usually gets worse before it improves after a currency depreciation
C. the trade balance usually gets better before it gets worse after a currency appreciation
D. GDP usually decreases before it increases after a currency appreciation

If a nation’s interest rates are relatively low compared to those of other countries then the exchange value of its currency will tend to ?

by
If a nation’s interest rates are relatively low compared to those of other countries then the exchange value of its currency will tend to ?

A. depreciate under a system of fixed exchange rates
B. depreciate under a system of floating exchange rates
C. appreciate under a system of floating exchange rates
D. appreciate under a system of floating fixed rates