The quantity of Canadian dollars supplied in the foreign exchange market depends on O A. the demand for Canadian dollars in the foreign exchange market O B. decisions of the Bank of Canada O C. the exchange rate O D. the price of gold
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- Why would a nation dollarize—that is, adopt another countrys currency instead of having its own?What is the foreign exchange market?You own a local company. In the past year, you successfully expanded your sales market into Europe, and you now have profits and cash denominated in euros. You want to convert the euros to your home country currency to repatriate the profits and pay taxes. You are a. not required to convert the euros to the home currency to pay taxes. b. a demander of the euro in the foreign exchange market. c. a supplier of your home country's currency in the foreign exchange market. d. a demander of your home country's currency in the foreign exchange market.
- 1. The principal function of the foreign exchange market is the transfer of funds, thus purchasing power, from one nation and currency to another. 2. If it takes 116.57 yen to buy one dollar, it takes $.0085785 to buy one yen. 3. Purchasing-power parity theory postulates that the change in the exchange rate between two currencies is proportional to the change in the ratio in the two countries' general price levels. 4. The price-specie-flow adjustment mechanism operates by the deficit nation losing gold and experiencing a reduction in its money supply. 5. Monetary policy is very effective under a fixed exchange rate policy. True or FalaeThe value of the Russian Ruble changed from 94 to the dollar to 91 to the dollar. What is the likely effect of this change in the foreign exchange market? A. It will make Russia's imports cheaper but may harm its export competitiveness. B. It will boost Russia's exports, making them more competitive. I c. It will have no impact on trade, as exchange rates do not influence international commerce. D. It will encourage capital outflows and discourage foreign investment.K Using the currency cross rate table, convert US$298.00 to Canadian dollars. Canadian U.S. Euro Japanese British Australian dollar dollar pound dollar yen 1.5928 0.0126 2.2608 0.9087 1.1604 0.0082 1.6607 0.6667 0.0085 1.4309 0.5737 197.98 80.52 0.3923 Canadian dollar U.S. dollar Euro Japanese yen British pound Australian dollar 1.3899 0.7195 0.6278 0.8618 79.37 121.95 117.65 0.4423 0.6022 0.6989 0.0051 1.1005 1.4999 US$298.00 will purchase C$. (Round to the nearest cent as needed.) 1.7431 0.0124 2.5491 www
- Currency Exchange Vietnamese bank rate Saigon Airport exchange bureau rate Hotel exchange bureau rate Assuming an intial cash amount for exchange to dong of: Page Rate d19,800 d19,500 d19,400 Problem 4 Vietnamese Coffee Coyote Many people were surprised when Vietnam became the second largest coffee producing country in the world in recent years, second only to Brazil. The Vietnamese dong, VND or d, is managed against the U.S. dollar but is not widely traded. If you were a traveling coffee buyer for the wholeale market (a "coyote" by industry terminology), which of the following currency rates and exchange commission fees would be in your best interest if traveling to Vietnam on a buying trip? 4 $10,000.00 > of 6 Commission 2.50% 2.00% 1.50%What is the effect of the uncertainty about the future purchasing power of a currency? a. Discouraging investment and savings b. Encourages savings and investment c. No effect d. Decreases current purchasesWhat is the exchange rate between dollars and Swiss francsif one dollar is convertible into 1/40 ounce of gold andone Swiss franc is convertible into 1/25 ounce of gold?
- QUESTION 2 The following figure shows the Euro-U.S. Dollar exchange rate in the past year, i.e., the price of 1 Euro in U.S. dollars. Which of the following statements is incorrect? EUR/USD (EURUSD=X) ☆ CCY - CCY Delayed Price. Currency in USD 1.1478 -0.0113 (-0.9783%) As of 10.29PM GMT. Market open. O Indicators O Comparison 8 Date Range 10 5D 1M W Interval 1D N Line O Draw O Set 3M 6M YTD 1Y 2Y 5Y Мах yahoo!finance EURUSD-X 1.1579 1.2250 1.2000 1.1750 11478 Dec 2021 Feb Mar Apr May Jun Jul Aug Sep Oct Nov4. What factors will shift the supply and demand for currency?The graph shows the supply curve of Canadian dollars. Draw a new supply curve that shows the effect of a rise in the expected future exchange rate. Label it. A change in the expected future exchange rate changes the supply of Canadian dollars________, and a change in Canadian demand for imports changes the supply of Canadian dollars O A. today; today B. in the future; today C. today; in the future D. in the future; in the future 120 MacBook Pro 110 100- 90- 80- 70- Exchange rate (Canadian cents per Canadian dollar) Click the graph, choose a tool in the palette and follow the instructions to create your graph. So 70 80 90 100 10 20 30 40 50 60 Quantity (billions of Canadian dollars per day) >>> Draw only the objects specified in the question.