Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
1. Which of these seeks to reduce, or even eliminate, trade restrictions and tariffs to ease
trade between countries?
2. Which of these is the trade agreement between South American countries to create their
own free trade zone?
3. Which of these is a political and economic union of 27 European countries?
4. Which of these is an international organization that deals with international trade rules
and helps settle disputes between its member governments?
5. Which of these is an organization of 185 countries that monitors currency exchange,
examines financial stability, and watches the global financial system?
6. Which of these is a company that operates production and/or sales facilities in multiple
countries?
7. Which of these is defined as long-term investment in capital in a business operation
located in an economy other than that in which the company is based?
8. Which of these is defined as the price of one currency in terms of another?
9. Which of these is defined as exchanging one currency for another today?
10. Which of these is defined as the amount of foreign currency it takes to buy one unit of
domestic currency?
11. Which of these is defined as the amount of domestic currency it takes to buy one unit of
foreign currency?
12. Which of these is defined as the currency exchange rate between two foreign currencies,
each of which is not the currency of the domestic country?
13. Which of these is defined as the practice of simultaneously purchasing and selling an
asset in different forms or markets to take advantage of an imbalance in price?
14. Which of these is defined as the possibility that the spot currency exchange rate will
change and reduce the value of foreign assets and cash flows?
15. Which of these is defined as an exchange rate regime where the currency is completely
determined by the foreign-exchange market through supply and demand?
16. Which of these is defined as an exchange rate regime where the country's central bank
allows its currency price to float freely between an upper and lower bound and may buy and sell
large amounts of it in order to provide price support or resistance?
17. Which of these is defined as an exchange rate regime where a currency's price is fixed to
the value of another currency or to a basket of other currencies?
18. Which of these is defined as a contractual agreement that states the exchange rate to be
used at a future exchange date?
19. Which of the following is NOT an example of how a company could hedge to reduce
currency risk?
20. Which of the following is a theory that the difference in interest rates between two
countries is equal to the difference between the forward currency exchange rate and the spot
exchange rate?
21. Which of the following is the theory relating the expected adjustment needed in the
future spot exchange rate between countries to the inflation rate in each country?
22. Which of the following is an economic principle that states all identical goods in different
markets must have the same price?
23. Which of the following is the definition of political risk?
24. Purchasing power parity (PPP) may not hold exactly because of which of the following?
25. Exchange Rate Quote Convert the following direct quote to a dollar indirect quote:
1 Danish krone = $0.1755
26. Exchange Rate Quote Convert the following direct quote to a dollar indirect quote:
1 Indian rupee = $0.02250
27. Exchange Rate Quote Convert the following direct quote to a dollar indirect quote:
1 Israeli shekel = $0.2351
28. Exchange Rate Quote Convert the following direct quote to a dollar indirect quote:
1 Korean won = $0.001045
29. Exchange Rate Quote Convert the following direct quote to a dollar indirect quote:
1 Malaysian ringget = $0.2875
30. Exchange Rate Quote Convert the following direct quote to a dollar indirect quote:
1 Thai baht = $0.03057
31. Exchange Rate Quote Convert the following indirect quote to a dollar direct quote:
$1 = 15,990 Vietnam dong
32. Exchange Rate Quote Convert the following indirect quote to a dollar direct quote:
$1 = 2,150.4 Venezuelan bolivar
