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The price of foreign currency in terms of domestic currency is A) the balance of trade.

The price of foreign currency in terms of domestic currency is

A) the balance of trade.

B) the imported inflation.

C) the law of comparative advantage.

D) the foreign exchange rate.

 

42) The foreign exchange rate describes the

A) balance of trade.

B) balance of payments.

C) law of comparative advantage.

D) price of foreign currency in terms of domestic currency.

 

43) When the dollar price of a euro is $0.20, it is correct to state that a Canadian traveling in Europe will receive ________ euros per dollar.

A) 2

B) 4

C) 5

D) 20

 

44) When the dollar price of a euro is $0.25, it is correct to state that a Canadian traveling in Europe will receive ________ euros per dollar.

A) 2

B) 4

C) 5

D) 20

45) When the dollar price of a euro is $0.50, it is correct to state that a Canadian traveling in Europe will receive ________ euros per dollar.

A) 2

B) 4

C) 5

D) 20

 

46) When the dollar price of a euro is $2.00, it is correct to state that a Canadian traveling in Europe will receive ________ euros per dollar.

A) 0.2

B) 0.4

C) 0.5

D) 0.25

 

47) When the dollar price of a euro is $0.05, it is correct to state that a Canadian traveling in Europe will receive ________ euros per dollar.

A) 2

B) 4

C) 5

D) 20

 

48) Every transaction concerning the exportation of Canadian goods constitutes a

A) demand for dollars, with no effect on markets for foreign currencies.

B) supply of foreign currency with no effect on the market for dollars.

C) supply of foreign currency and demand for dollars.

D) demand for foreign currency and supply of dollars.

49) Flexible exchange rates occur when

A) no one knows what the true value of a currency is.

B) governments and central banks spend foreign reserves to prop an exchange rate at a certain level.

C) exchange rates are determined by forces of supply and demand.

D) speculators bet that a currency will soon be depreciated.

 

50) Under a flexible exchange rate system, an increase in the value of a Canadian dollar in terms of other currencies is referred as

A) a depreciation of the Canadian dollar.

B) an appreciation of the Canadian dollar.

C) a monetizing of the Canadian dollar.

D) a devaluation of the Canadian dollar.

Dec 07 2019 Read more Less More

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