Question 16 The term "exchange rate" refers to the price of one nation's currency in terms of another country's currency. O True O False 1 pts
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Step 1: The exchange rate is the value of one currency in relation to another. Show more…
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The nominal exchange rate: a. Is the amount of one country's goods that could be obtained with the same goods of another country b. Is a synonymous term for the swap rate c. Is the rate that one can exchange the currency of one country for the currency of another country d. Is always expressed as units of a foreign currency per U.S. dollar
Jonathan T.
The forward rate is the exchange rate used for future exchange of currencies. True or False?
Akash M.
2. If the dollar price of the yen (the price of the yen stated in dollars) rises, then we would say that the dollar has appreciated relative to the yen. the inflation adjusted value of the dollar has fallen. the yen has appreciated relative to the dollar. the yen has depreciated relative to the dollar. 3. If the dollar used by 160 Yen and now buys 100 Yen, there has been a decrease in the demand for Yen. a depreciation of the Yen. a depreciation of the Dollar. an appreciation of the Dollar. 4. The demand for foreign currency in the U.S. is a direct demand. derived demand based on the demand for U.S. products. derived demand based on the demand for foreign products. direct demand based on the demand for U.S. dollars. 5. The supply of dollars in foreign exchange markets is determined by the Federal Reserve Board. determined by the demand for American goods. determined by the American demand for foreign goods. a function of the international banking system. 6. If the Euro appreciates relative to the American dollar, then it takes more Euros than before to buy each dollar. It will be less expensive than before for Europeans to travel in the United States. it takes fewer dollars than before to buy each Euro. European products have become less expensive for Americans. 7. The price of one currency in terms of another is the price of gold. price of a SDR. foreign exchange rate. domestic exchange rate.
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