第十一章 外汇市场第十一 外汇市场第十一章 外汇市场第十一章 外汇市场.doc

Chapter 11 The Foreign Exchange Market 11.1 Single Choice 1) American firms became less competitive compared to foreign firms during the 1980s because A) the quality and productivity of American workers declined. B) foreign firms were younger than American firms and as a result had more modern facilities that made use of the latest technology. C) the U.S. dollar became worth more in terms of foreign currencies. D) the U.S. dollar became worth less in terms of foreign currencies. 2) A spot transaction in the foreign exchange market involves the A) exchange of exports and imports at a specified future date. B) exchange of bank deposits at a specified future date. C) immediate (within two days) exchange of exports and imports. D) immediate (within two days) exchange of bank deposits. 3) When the value of the British pound changes from $1.50 to $1.25, then the pound has _________ and the dollar has _________. A) appreciated; appreciated B) depreciated; appreciated C) appreciated; depreciated D) depreciated; depreciated 4) When the value of the dollar changes from ￡0.5 to ￡0.75, then the pound has _________ and the dollar has _________. A) appreciated; appreciated B) depreciated; appreciated C) appreciated; depreciated D) depreciated; depreciated 5) When the exchange rate changes from 1.0 euros to the dollar to 1.2 euros to the dollar, then the euro has _________ and the dollar has _________. A) appreciated; appreciated B) depreciated; appreciated C) appreciated; depreciated D) depreciated; depreciated 6) When the exchange rate changes from 1.0 euros to the dollar to 0.8 euros to the dollar, then the euro has _________ and the dollar has _________. A) appreciated; appreciated B) depreciated; appreciated C) appreciated; depreciated D) depreciated; depreciated 7) If the dollar _________ from 1.2 euros per dollar to 0.8 euros per dollar, the euro _________ from 0.83 dollars to 1.25 dollars per euro