Reading 17: The Exchange Rate and Balance of Payments - LO investor, class, company

mayanfang1

A)   sale of a U.S. company to a Dutch investor.

B)   sale of U.S. made automobiles to Vietnamese consumers.

C)   purchase of Korean televisions by an American distributor.

Q11. Phil Howell, a foreign exchange trader, makes the following two statements about foreign exchange rates:

Statement 1: A decrease in the expected future exchange value of a currency will increase supply and decrease demand for that currency.

Statement 2: Interest rate parity (IRP) is the idea that exchange rates will adjust to reflect the difference in inflation rates between different countries.

With respect to these statements:

A)   both are correct.

B)   both are incorrect.

C)   only one is correct.

Q12. Which one of the following factors will most likely cause a country’s domestic currency to appreciate on the foreign exchange market? An increase in:

A)   its exports relative to its imports.

B)   the real rate of interest in others countries.

C)   its domestic rate of inflation.

superchin

 thx

annyyu

re

mmao

 xx

沙胖胖

thanks

suodi

[em50]

tomathome

see

helloalan

 aa

htpeng

a

Michjay

j