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
d. 0.0012
e. 1
Question 2The demand for foreign currency in the United States is based on the demand for:
a. domestic goods and services.
b. domestic exports.
c. gold.
d. foreign goods and services.
e. U.S. dollars.
Question 3The Wall Street Journal publishes an exchange rate of US/C = 0.714, where US represents the U.S. dollar and C represents the Canadian dollar. What does this mean?
a. The Canadian dollar price of one U.S. dollar is US0.714.
b. The Canadian dollar price of one U.S. dollar is C0.714.
c. The U.S. dollar price of one Canadian dollar is C1.40.
d. The U.S. dollar price of one Canadian dollar is US1.40
e. The U.S. dollar price of one Canadian dollar is US0.714.
Question 4If 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
Question 5If the price in U.S. dollars for one Singapore dollar is 0.625 U.S. dollars, then the price in Singapore dollars for one U.S. dollar is:
a. 1.0 Singapore dollars.
b. 0.625 Singapore dollars.
c. 1.6 Singapore dollars.
d. 0.375 Singapore dollars.
e. 2.66 Singapore dollars.
Question 6If one U.S. dollar = 11.76 Mexican pesos Ps, then the reciprocal exchange rate is:
a. 1 Ps = 11.76.
b. 1 = Ps 3.92.
c. 1 = Ps 0.008.
d. 1 = Ps 0.085.
e. 1 Ps = 0.085.
Question 7If 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. 1.5709 NZD.
b. 1.75 NZD.
c. 1.6711 NZD.
d. 0.5709 NZD.
e. 1.75 NZD.
Question 8On December 29th, 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 compared to before
b. an American skier living in Florida will now view this trip as highly expensive compared to before
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 as compared to before
e. an American skier living in Florida will no longer take this trip
Question 9An 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.
Question 10A majority of international transactions involve the buying and selling of _____.
a. bank deposits denominated in foreign currency
b. currency notes
c. traveler's checks
d. stocks denominated in domestic currency
e. bills of exchange
Question 11Currency and bank deposits that are denominated in foreign money are called:
a. traveler's checks.
b. international funds.
c. foreign exchange.
d. foreign remittances.
e. international bonds.
Question 12Which 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 in which foreign tourists can buy domestic goods
c. A global market in which people exchange one currency for another
d. A place where contracts to deliver agricultural products across countries are exchanged
e. A market where the central banks of different countries exchange government bonds
Question 13_____ is a specific location in New York City where contracts to deliver agricultural and metal products are bought and sold.
a. The U.S. Department of Commerce
b. The New York Stock Exchange
c. The Commodity Exchange
d. The Barclays Bank
e. The U.S. Commodity Futures Trading Commission
Question 14Markets 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.
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