Markets in which the currencies of different countries across the world are traded are called: A)stock markets.
B)foreign exchange markets.
C)loanable-funds markets.
D)commodity markets.
E)money markets.
Which of the following correctly describes a foreign exchange market? A)A place where foreign goods are bought and sold in any country.
B)A market where foreign tourists can buy domestic goods.
C)A global market where people exchange one currency for another.
D)A bank in New York city that trades in gold certificates.
E)The central banks of different countries that control the supply of currencies.
A majority of international transactions involves the buying and selling of _____. A)bank deposits denominated in foreign currency
B)currency notes
C)traveler's checks
D)stocks denominated in foreign currency
E)bills of exchange
An exchange rate can be described as: A)the price of a foreign currency as determined by the World Bank.
B)the price of one country's currency in terms of another country's currency.
C)the dollar value of imports and exports undertaken in the world economy during a year.
D)the price of foreign currency as established by the relative amount of tourism.
E)the dollar value of U.S. international trade.
On December 29, the cost of a skiing trip to Finse, Norway, was 6,500 krone. Two weeks later, the American dollar appreciated against the Norwegian krone. If the price of the trip in Norway remains the same: A)an American skier living in Florida will now view this trip as cheaper.
B)an American skier living in Florida will now view this trip as highly expensive.
C)an American skier living in Florida will now view this trip as of the same value as before.
D)an American skier living in Florida will now value this trip less.
E)an American skier living in Florida will no longer take this trip.
If the U.S. dollar price of the New Zealand dollar (NZD) is $0.5709, then the NZD price of one U.S. dollar will be: A)NZD 1.5709.
B)NZD 1.75.
C)$1.6711.
D)0.5709.
E)$1.75.
If one U.S. dollar = 11.76 Mexican pesos, then the reciprocal exchange rate equals: A)$11.76.
B)Ps 3.92.
C)Ps 0.008.
D)Ps 0.085.
E)$0.085.
If the current dollars/peso exchange rate is $0.10 per peso, so that 10 pesos buy you a dollar, then how many dollars do you need to buy something that costs 50 pesos? A)$50
B)$5
C)$15
D)$0.50
E)$1.50
The Wall Street Journal publishes an exchange rate of US$/C$ = 0.714. What does this mean? A)The Canadian dollar price of one U.S. dollar is $0.714.
B)The Canadian dollar price of one U.S. dollar is C$0.714.
C)The U.S. dollar price of one Canadian dollar is C$1.40.
D)The U.S. dollar price of one Canadian dollar is $1.40
E)The U.S. dollar price of one Canadian dollar is $0.714.
Given an exchange rate of 120 yen = $1 what is the U.S. dollar price of 1 yen? A)$0.025
B)$0.0083
C)120 yen
D)$0.0012
E)0.0083 yen