Suppose that a Swiss television set that costs 400 francs in Switzerland cost $200 in the United States. The exchange rate between the franc and the dollar is ?

Related Mcqs:

The theory of international exchange that holds that exchange rates adjust to offset differences in countries inflation rates in the ?

A. price feedback theory B. trade feedback theory C. J-curve theory D. purchasing power parity theory...

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...

An important feature of a _______ is that the holder has the right but not the obligation to buy or sell currency ?

A. Swap B. foreign exchange arbitrage C. foreign exchange option D. futures market contract...

Currency speculation is _____ if speculators bet against market forces that cause exchange fluctuations, thus moderating such fluctuations ?

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

A difference between forward and futures contracts is that ?

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...