Under a system of floating exchange rates there is a general tendency for ?
The rise in value of one currency relative to another is ?
A fiscal expansion in the UK ?
Exchange rates that are determined by the unregulated forces of supply and demand are ?
The agreements that were reached at the Bretton Woods conferences in 1944 established a system ?
The price of one country’s currency in terms of another country’s currency is the ?
A difference between forward and futures contracts is that ?
Currency speculation is _____ if speculators bet against market forces that cause exchange fluctuations, thus moderating such fluctuations ?
If the exchange rate is 11 Mexican pesos per U.S dollar, then it takes _______ to buy 1 peso?
Suppose that Boeing is to receive payment in euros in 6 month and wants to engage in hedging the firm would _______ euros on the 6-month forward market in order to protect itself from a/an of the euro?
The essential feature of a _______ is that it immediately fixed the rate at which a specified amount of one currency is to be delivered in exchange for a specific amount of another at a future date ?
The difference between bid (buying) rates and ask (selling) rates is called the ?
The least common type of transaction in the foreign exchange is a ?
The reduction or covering of foreign exchange risk is called ?
Suppose there occurs an increase in the Canadian demand for Japanese computers This results in a (an) ?
Given the foreign currency market for the Swiss franc, the supply of franc slopes upward, because as the dollar price of the franc rises ?
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 depreciation of the dollar will have its most pronounced impact on imports if the demand for imports is ?
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?
The supply of foreign currency tends to be ?
The J-curve effect refers to the observation that ?
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 ?
The theory of international exchange that holds that exchange rates adjust to offset differences in countries inflation rates in the ?
The fall in value of one currency relative to another is ?
Expansionary monetary policy ?
If the Bank of England reduces the money supply to reduce inflation a floating exchange rate will aid the Bank of England in fighting inflation because ?
All currencies other than the domestic currency of a given country are referred to as ?
Speculators in foreign exchange markets do all of the following except ?
The real effective exchange rate for the U.S dollar ?
Investor engage in _____ when they move funds into foreign currencies in order to take advantage to interest rates abroad that are higher than domestic interest rates ?
Which of the following is not a reason why Joe Smith (an American) might participate as a demander in the foreign exchange market ?
If Sweden’s currency depreciates relative to Norway’s currency ?
The franc is said to be selling at a _______ if the spot dollar price is $0.48 and the nine-month forward rate is $0.42 ?
Riskless transactions to take advantage of profit opportunities due to a price differential or a yield differential in excess of transaction costs are called ?
If the bank is selling francs for $0.45, then what is the implied franc price of the dollar ?
An important feature of a _______ is that the holder has the right but not the obligation to buy or sell currency ?
The exchange rate is kept the same across geographically separate markets by ?
In a supply and demand diagram for Japanese yen, with the exchange rate in dollars per yen on the vertical axis, the demand schedule for yen is drawn sloping ?
The largest volume of foreign exchange trading takes place in ?
During the era of dollar appreciation from 1981 to 1985 a main reason why the dollar did not fall in value was ?
Under a system of floating exchange rates the pound would depreciate in value if there occurs ?
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 ?
1. The most widely traded currency in the foreign exchange market is the ?

In 1971, most countries ?

A. adopted a new system of fixed exchange rates
B. gave up trying to fix exchange rates formally and began allowing them to be determined essentially by supply and demand
C. adopted single internationally accepted currency whose use is limited to international transactions
D. returned to the gold standard

Correct Answer: gave up trying to fix exchange rates formally and began allowing them to be determined essentially by supply and demand ✔

Last Updated: June 11, 2019