If 1 equals 2 euros, then 1 euro equals

If 1 equals 2 euros, then 1 euro equals
 a. 4.00
  b. 2.00
  c. 0.50
  d. 1.00
  e. 0.25

QUESTION 2

If you are to receive a payment of 200 at the end of the first year and a payment of 250 at the end of the second year and the market interest rate is 5 percent, the present value of this income stream is
 a. 400.37
  b. 417.23
  c. 450.00
  d. 475.37
  e. 490.13

QUESTION 3

Foreign exchange means
 a. changing dollars into foreign currency
  b. domestic currency held to finance international trade
  c. foreign currency
  d. trade between governments
  e. trade between individuals in different countries

QUESTION 4

The present value of 200 to be paid to you at the end of two years, if the market interest rate is 5 percent, is
 a. 181.41
  b. 190.00
  c. 210.00
  d. 225.78
  e. cannot be determined from the information given

QUESTION 5

An exchange rate is
 a. the rate at which goods are traded between countries
  b. the rate of the net difference between exports and imports
  c. the denomination of currency used to purchase imports
  d. the price of one currency in terms of another
  e. the price at which one good trades for another

QUESTION 6

There is an inverse relationship between the present value of a future amount and the interest rate used for discounting.
 a. True
  b. False