What is the cost of marginal investment in accounts receivable under the proposed plan? (See Table 14.7) A) $313,460 B) $276,500 C) $246,875 D) $368,314 ANSWER C
Date: September 19th, 2020
Describe the Bretton Woods currency system? What will be an ideal response? ANSWER Answer: In the Bretton Woods System, in place between 1944 and 1973, the participating countries agreed to an exchange rate regime that linked their exchange rates to the dollar. They could fluctuate in a 1% band around a fixed parity. […]
Date: September 19th, 2020
In fixed exchange rate systems, the tendency is for the domestic currency to be ________. A) undervalued B) at parity C) overvalued D) unchanged relative to the rest of the world’s currencies ANSWER Answer: C
Date: September 19th, 2020
If you were attempting to characterize the currency in a floating rate system, the most important factor to analyze is the ________ of the future exchange rate changes. A) conditional distribution B) histogram C) sample mean D) sample variance ANSWER Answer: A
Date: September 19th, 2020
In which one of the following systems would it be least difficult to quantify the currency risk? A) floating exchange system B) target zone system C) pegged exchange rate system D) currency board ANSWER Answer: A
Date: September 19th, 2020
What is the marginal investment in accounts receivable under the proposed plan? (See Table 14.7) A) $1,234,375 B) $1,382,500 C) $1,567,300 D) $1,841,570 ANSWER A
Date: September 19th, 2020
When the central bank attempts to influence the supply of money in a country by the sale or purchase of government bonds, the practice is known as ________. A) open market operations B) a sterilized float C) a dirty float D) changing the required reserves ANSWER Answer: A
Date: September 19th, 2020
Which of the following would NOT be a major component of a country’s official reserves? A) foreign exchange B) IMF-related reserve assets C) gold D) government bonds ANSWER Answer: D
Date: September 19th, 2020
What is the name of the exchange rate system in which countries allow the value of their currency to be determined freely in the foreign exchange markets around the world without any government restrictions? A) European currency unit B) fixed currencies C) floating currencies D) dirty float currency ANSWER Answer: C
Date: September 19th, 2020
What is the name of the exchange rate system where the governments attempt to make sure the values of their currencies trade at particular values in the foreign exchange market, relative to another currency or a “basket” of currencies? A) European currency unit B) fixed currencies C) floating currencies D) dirty float currency […]
Date: September 19th, 2020
