An American firm that buys foreign exchange because its managers expect the dollar to depreciate is ...

An American firm that buys foreign exchange because its managers expect the dollar to depreciate is

A) increasing the supply of foreign exchange.
B) decreasing the demand for foreign exchange.
C) speculating.
D) hedging.

Question 2 - From the late 1940s until the creation of the WTO, the organization that was primarily responsible for conducting rounds of trade negotiations was the

A) World Bank.
B) IMF.
C) United Nations.
D) GATT.

Question 3 - The average agricultural tariff in the U.S. is about

A) 3 percent.
B) 5 percent.
C) 9 percent.
D) 15 percent.

Question 4 - All else equal, if Canada raises its interest rates,

A) the dollar depreciates.
B) the U.S. demand for Canadian dollars decreases.
C) the Canadian supply of Canadian dollars increases.
D) the Canadian dollar will depreciate.

Question 5 - The primary mission of the World Bank today is to

A) provide capital to underdeveloped countries.
B) provide capital to firms around the world.
C) provide financial assistance for the reconstruction of war-damaged nations.
D) help countries manage their exchange rates.

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An American firm that buys foreign exchange because its managers expect the dollar to depreciate is ...

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