Foreign Exchange

A. exchange rates to be insensitive to the differential rates of inflation between countries
B. the currencies of relatively high-inflation countries to depreciate
C. the currencies of relatively high inflation countries to appreciate
D. the currencies of relatively low inflation countries to depreciate

A. a weakening of a currency
B. A depreciation of a currency
C. An appreciation of a currency
D. a debasement of a currency

A. has no predictable effect on the price of the pound sterling?
B. does not affect the price of the pound sterling
C. tends to appreciate the pound sterling
D. tends to depreciate the pound sterling

A. floating exchange rates
B. pegged exchange rates
C. managed exchange rates
D. fixed exchange rates

A. of essentially fixed exchange rates under which each country agreed to intervene in the foreign exchange market when necessary to maintain the agreed upon value of its currency
B. in which the value of currencies was fixed in terms of a specific number of ounces of gold, which in turn determined their values in international trading
C. of floating exchange rates determined of the supply and demand of one nation’s currency relative to the currency of other nations
D. That prohibited governments from intervening in the foreign exchange markets

A. forward contracts occur in a specific locations-for example, the Chicago Mercantile Exchange
B. futures contracts have negotiable delivery dates
C. forward contracts can be tailored in amount and delivery date to the need of importers of exporters
D. futures contracts involve no brokerage fees or other transactions costs

A. destabilizing
B. stabilizing
C. inflationary
D. deflationary

A. $0.0909
B. $0.1002
C. $0.2826
D. $1.1024

A. sell; appreciation
B. sell; depreciation
C. buy; depreciation
D. buy; appreciation

A. forward contract
B. spot contract
C. money contract
D. bid contract