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Foreign Exchange

Suppose there occurs an increase in the Canadian demand for Japanese computers This results in a (an) ?

Economics Mcqs, Foreign Exchange /
Suppose there occurs an increase in the Canadian demand for Japanese computers This results in a (an) ?

A. increase in the demand for yen
B. decrease in the demand for yen
C. increase in the supply of yen
D. decrease in the Supply of yen

Suppose there occurs an increase in the Canadian demand for Japanese computers This results in a (an) ? Read More »

Economics Mcqs, Foreign Exchange

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

Economics Mcqs, Foreign Exchange /
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

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

Economics Mcqs, Foreign Exchange

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 ?

Economics Mcqs, Foreign Exchange /
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

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 ? Read More »

Economics Mcqs, Foreign 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?

Economics Mcqs, Foreign 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?

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

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? Read More »

Economics Mcqs, Foreign Exchange

The J-curve effect refers to the observation that ?

Economics Mcqs, Foreign Exchange /
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

The J-curve effect refers to the observation that ? Read More »

Economics Mcqs, Foreign Exchange