Question 1

________ is the relative ability of two countries' currencies to buy the same "basket" of goods in those two countries.

Accepted Answer

Purchasing

Question 2

Translating subsidiary earnings from a weak host country currency into a strong home currency ________.

Accepted Answer

A)  reduces the amount of these earnings when stated in the home currency 
B)  increases stated earnings in the home country 
C)  reduces stated earnings in the host country 
D)  increases the amount of these earnings when stated in the home currency 
A)  reduces the amount of these earnings when stated in the home currency 
B)  increases stated earnings in the home country 
C)  reduces stated earnings in the host country 
D)  increases the amount of these earnings when stated in the home currency

Question 3

Which of these employs charts of past trends in currency prices and other factors to forecast exchange rates?

Accepted Answer

A)  Efficient market view 
B)  Fundamental analysis 
C)  Fisher effect 
D)  Technical analysis 
A)  Efficient market view 
B)  Fundamental analysis 
C)  Fisher effect 
D)  Technical analysis

Question 4

Discuss the challenges involved in the business of forecasting exchange rates.

Accepted Answer

Forecasting exchange rates is a challeng

Question 5

Which of the following statements is NOT true?

Accepted Answer

A)  Forward exchange rates reflect all relevant publicly available information at any given time. 
B)  Forward exchange rates are perfect predictors of future exchange rates. 
C)  A market is efficient if prices of financial instruments quickly reflect new public information made available to traders. 
D)  There is always a certain amount of deviation between forward and actual exchange rates. 
A)  Forward exchange rates reflect all relevant publicly available information at any given time. 
B)  Forward exchange rates are perfect predictors of future exchange rates. 
C)  A market is efficient if prices of financial instruments quickly reflect new public information made available to traders. 
D)  There is always a certain amount of deviation between forward and actual exchange rates.

Question 6

Translating subsidiary earnings from a weak host country currency into a strong home country currency reduces the amount of these earnings when stated in the home currency.

Accepted Answer

A) True 
 B)False

Question 7

Devaluation of a currency results in all of the following EXCEPT ________.

Accepted Answer

A)  lowers profit margins for domestic companies 
B)  lowers the price of a country's exports 
C)  increases the price of a country's imports 
D)  reduces consumers' buying power 
A)  lowers profit margins for domestic companies 
B)  lowers the price of a country's exports 
C)  increases the price of a country's imports 
D)  reduces consumers' buying power

Question 8

A(n) ________ is a monetary regime that is based on an explicit commitment to exchange domestic currency for a specified foreign currency at a fixed exchange rate.

Accepted Answer

The answer of A(n) ________ is a monetary regime that...

Question 9

The value of a currency expressed in terms of gold is called its ________.

Accepted Answer

A)  exchange rate 
B)  gold value 
C)  par value 
D)  gold currency value 
A)  exchange rate 
B)  gold value 
C)  par value 
D)  gold currency value

Question 10

A company selling in a country with a strong currency while sourcing from a country with a weak currency ________.

Accepted Answer

A)  suggests unethical conduct 
B)  generally faces government penalties 
C)  ends up going bankrupt 
D)  improves its profits 
A)  suggests unethical conduct 
B)  generally faces government penalties 
C)  ends up going bankrupt 
D)  improves its profits

Question 11

An economic condition in which a trade deficit causes a permanent negative shift in a country's balance of payments is called ________.

Accepted Answer

A)  revaluation 
B)  managed float system 
C)  the Fisher effect 
D)  fundamental disequilibrium 
A)  revaluation 
B)  managed float system 
C)  the Fisher effect 
D)  fundamental disequilibrium

Question 12

Under the gold standard, if the U.S. dollar was fixed at $30/oz of gold and Japan was fixed at ¥75/oz of gold, what would be the Yen/dollar exchange rate?

Accepted Answer

A)  ¥2.50/$ 
B)  $2.50/¥ 
C)  ¥0.40/$ 
D)  ¥2250/$ 
A)  ¥2.50/$ 
B)  $2.50/¥ 
C)  ¥0.40/$ 
D)  ¥2250/$

Question 13

Which of these include activities that directly affect a nation's interest rates or money supply?

Accepted Answer

A)  Monetary policy 
B)  Government spending 
C)  Purchasing power parity 
D)  Fiscal policy 
A)  Monetary policy 
B)  Government spending 
C)  Purchasing power parity 
D)  Fiscal policy

Question 14

The value of a currency expressed in terms of gold is called its ________.

Accepted Answer

The answer of The value of a currency expressed in...

Question 15

The ________ holds that prices of financial instruments do not reflect all publicly available information.

Accepted Answer

inefficien

Question 16

When a country's currency is ________, the price of its exports on world markets declines and the price of imports increases.

Accepted Answer

The answer of When a country's currency is ________, the...

Question 17

By limiting the growth of a nation's money supply, the gold standard was also effective at controlling ________.

Accepted Answer

A)  cross rates 
B)  inflation 
C)  currency reserves 
D)  economic development 
A)  cross rates 
B)  inflation 
C)  currency reserves 
D)  economic development

Question 18

________ is an example of monetary policy.

Accepted Answer

A)  Increasing taxes 
B)  Lowering taxes 
C)  Increasing government spending 
D)  Selling government securities 
A)  Increasing taxes 
B)  Lowering taxes 
C)  Increasing government spending 
D)  Selling government securities

Question 19

Which of these is true about inflation?

Accepted Answer

A)  It is the result of the supply and demand for a currency 
B)  It erodes people's purchasing power 
C)  It raises prices of goods and services 
D)  All of the above 
A)  It is the result of the supply and demand for a currency 
B)  It erodes people's purchasing power 
C)  It raises prices of goods and services 
D)  All of the above

Question 20

Its limited supply made gold a highly demanded commodity but its weight made its transportation difficult and expensive.

Accepted Answer

A) True 
 B)False

________ is the relative ability of two countries' currencies to buy the same "basket" of goods in those two countries.

Translating subsidiary earnings from a weak host country currency into a strong home currency ________.

Which of these employs charts of past trends in currency prices and other factors to forecast exchange rates?

Discuss the challenges involved in the business of forecasting exchange rates.

Which of the following statements is NOT true?

Translating subsidiary earnings from a weak host country currency into a strong home country currency reduces the amount of these earnings when stated in the home currency.

Devaluation of a currency results in all of the following EXCEPT ________.

A(n) ________ is a monetary regime that is based on an explicit commitment to exchange domestic currency for a specified foreign currency at a fixed exchange rate.

The value of a currency expressed in terms of gold is called its ________.

A company selling in a country with a strong currency while sourcing from a country with a weak currency ________.

An economic condition in which a trade deficit causes a permanent negative shift in a country's balance of payments is called ________.

Under the gold standard, if the U.S. dollar was fixed at $30/oz of gold and Japan was fixed at ¥75/oz of gold, what would be the Yen/dollar exchange rate?

Which of these include activities that directly affect a nation's interest rates or money supply?

The value of a currency expressed in terms of gold is called its ________.

The ________ holds that prices of financial instruments do not reflect all publicly available information.

When a country's currency is ________, the price of its exports on world markets declines and the price of imports increases.

By limiting the growth of a nation's money supply, the gold standard was also effective at controlling ________.

________ is an example of monetary policy.

Which of these is true about inflation?

Its limited supply made gold a highly demanded commodity but its weight made its transportation difficult and expensive.

Globalization

Cross-Cultrual Busines

Politics, Law, and Business Ethics

Economic Systems and Development

International Trade

Business-Government Trade Relations

Foreign Direct Investment

Regional Economic Integration

International Financial Markets

International Strategy and Organization

Analyzing International Opportunities

Selecting and Managing Entry Modes

Developing and Marketing Products

Managing International Operations

Hiring and Managing Employees

Filters

Exam 10: International Money System

________ is the relative ability of two countries' currencies to buy the same "basket" of goods in those two countries.

Translating subsidiary earnings from a weak host country currency into a strong home currency ________.

Which of these employs charts of past trends in currency prices and other factors to forecast exchange rates?

Discuss the challenges involved in the business of forecasting exchange rates.

Which of the following statements is NOT true?

Translating subsidiary earnings from a weak host country currency into a strong home country currency reduces the amount of these earnings when stated in the home currency.

Devaluation of a currency results in all of the following EXCEPT ________.

A(n) ________ is a monetary regime that is based on an explicit commitment to exchange domestic currency for a specified foreign currency at a fixed exchange rate.

The value of a currency expressed in terms of gold is called its ________.

A company selling in a country with a strong currency while sourcing from a country with a weak currency ________.

An economic condition in which a trade deficit causes a permanent negative shift in a country's balance of payments is called ________.

Under the gold standard, if the U.S. dollar was fixed at $30/oz of gold and Japan was fixed at ¥75/oz of gold, what would be the Yen/dollar exchange rate?

Which of these include activities that directly affect a nation's interest rates or money supply?

The value of a currency expressed in terms of gold is called its ________.

The ________ holds that prices of financial instruments do not reflect all publicly available information.

When a country's currency is ________, the price of its exports on world markets declines and the price of imports increases.

By limiting the growth of a nation's money supply, the gold standard was also effective at controlling ________.

________ is an example of monetary policy.

Which of these is true about inflation?

Its limited supply made gold a highly demanded commodity but its weight made its transportation difficult and expensive.

Globalization

Cross-Cultrual Busines

Politics, Law, and Business Ethics

Economic Systems and Development

International Trade

Business-Government Trade Relations

Foreign Direct Investment

Regional Economic Integration

International Financial Markets

International Strategy and Organization

Analyzing International Opportunities

Selecting and Managing Entry Modes

Developing and Marketing Products

Managing International Operations

Hiring and Managing Employees

Filters