the Central Bank of China announces that the yen will trade from tomorrow onwards at 5 to the dollar instead of the current 3 to the dollar, this is known as a. Revaluation b. Devaluation c. Depreciation d. Appreciation

In the pound per euro market an increase in the demand for the euro is also: A) an increase in the supply of pounds B) a decrease in the demand for pounds C) an increase in the supply of euros D) the result of higher UK interest rates

If in 2020 one Australian dollar exchanged for 0.75 U.S. dollars and in 2021 one Australian dollar exchanged for 0.69 U.S. dollars, then we know with certainty that: Australian goods became more expensive to Americans the Australian dollar depreciated relative to the U.S. dollar American goods became more expensive to Australians the U.S. dollar depreciated relative to the Australian dollar dollar the value of the Australian dollar did not change

In 1971 a British company, Beecham Group, received a Swiss franc loan of CHF 100 million. By the time the loan was repaid in 1976, the British pound had depreciated significantly against the Swiss franc. Which of the following statements is correct? A. The cost in British pounds of making the repayment did not change. B. The financial manager of Beecham Group would not be concerned about the change in the value of the pound. C. The change in the value of the British pound increased the profitability of the Beecham Group. D. The cost in British pounds of making the repayment increased significantly.

To prevent an appreciation of the British pound, the U.S. Federal Reserve has to: Sell U.S. currency Buy British currency Sell British currency Devalue the U.S. dollar

What does it mean when the dollar appreciates compared to when the dollar depreciates?   Has the US dollar been relatively strong or weak over the past year?   How does the strength of the dollar affect exports and imports?

15) When the nominal exchange rate in terms of dollars per yen rises, A) the dollar buys more yen and the dollar has depreciated. B) the dollar buys fewer yen and the dollar has depreciated. C) the dollar buys more yen and the dollar has appreciated. D) the dollar buys fewer yen and the dollar has appreciated.

An appreciation of the exchange value of the U.S. dollar would: A) increase the dollar prices of U.S. imports and the foreign cost of exports from the U.S. B) decrease the dollar prices of U.S. imports and the foreign cost of exports from the U.S. C) increase the dollar prices of U.S. imports, but decrease the foreign cost of exports from the U.S. D) decrease the dollar prices of U.S. imports, but increase the foreign cost of exports from the U.S.

According to the purchasing-power-parity theory, the U.S. dollar maintains its purchasing-power parity if it depreciates by an amount equal to the excess of:   Question 3 options:   a)  Foreign inflation over U.S. inflation   b)  Foreign interest rates over U.S. interest rates   c)  U.S. interest rates over foreign interest rates   d)  U.S. inflation over foreign inflation

At the beginning of the year, the exchange rate between the Brazilian real and the U.S. dollar was 3.2 reals per dollar. Over the year, Brazilian inflation was 3 percent and U.S. inflation was 5 percent. Explain what should we expect to happen to the U.S. dollar relative to Brazilian real? Provide the intuition.