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International Payment 3

Authored by Linh Pham

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International Payment 3
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31 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Given a two-country world, assume Canada and Sweden devalue their currencies by 20 percent. This would result in:

An appreciation in the Canadian currency
An appreciation in the Swedish currency
An appreciation in both currencies
An appreciation in neither currency

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Foreign exchange ________ earn a profit by a bid-ask spread on currencies they purchase and sell. Foreign exchange _________, on the other hand, earn a profit by bringing currencies and buyers and sellers of foreign currencies and earning a commission on each sale and purchase

Central banks; commercial bank
Dealers; speculators
Dealers; brockers
Speculators; brockers

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

From USA perspective. Which following quotations is indirect?

USA 1.4023 per GBP
CHF 0.978 per USD
USD 2.234 per EUR
A and C

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

If the direct quote for a U.S. investor for British pounds is $1.43/pound, then the indirect quote for the U.S. investor would be_______ and the direct quote for the British investor would be________.

Pound 0.699/$; Pound0.699/$
$0.699/Pound; Pound0.699/$
Pound1.43/Pound; Pound0.699/$
Pound 0.699/$; $1.43/Pound

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

To keep the yen’s exchange value from approciating against the dollar, Japan’s exchange stabilization fund would:

Buy yen for dollars on the foreign exchange market.
Sell dollars for yen on the foreign exchange market.
A or B
None of the above.

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Suppose a country with a fixed exchange rate decides to reduce the value of its currency. This change in policy is called:

a devaluation
a depreciation
an appreciation
a revaluation

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The cross rate

is an exchange rate computed from two non-dollar currencies.
is the number of units of the domestic currency for one unit of the foreign currency.
is the number of units of the foreign currency for one unit of the domestic currency.
can be computed only with two widely-traded currencies.

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