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When the euro rises and the dollar falls, foreign travel to Europe becomes cheaper for Americans.
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- If the euro depreciates against the U.S. dollar, can a dollar buy more or fewer euros as aresult? Explain.If the U.S. dollar has fallen in comparison with foreign currencies, which of the following statements is TRUE? U.S. products cost more for foreign consumers. U.S. exports are likely to fall. Foreign currencies buy fewer U.S. dollars. U.S exports increase.What is a long position in foreign exchange? Does a successful Long position mean the currency price becomes lower than what you bought it?
- Your company located in the US imports raw materials from Europe. If the European Central Bank announces to lower the Euro exchange rate, what impact do you expect to see in your business? A. Your company will pay higher US dollar costs to import from Europe. B. Your company will pay lower US dollar costs to import from Europe. C. The Euro exchange rate doesn't have any impact on your company. D. It should reduce your competitiveness in your home market.Recently the US Dollar has been gaining strength against the EURO. This is good news for US companies that export items to Europe and are paid in EUROS. O True O FalseGenerally speaking, how is the dollar price of euros determined? Cite a factor that might increase the dollar price of euros. Cite a different factor that might decrease the dollar price of euros. Explain: “A rise in the dollar price of euros necessarily means a fall in the euro price of dollars.” Illustrate and elaborate: “The dollar-euro exchange rate provides a direct link between the prices of goods and services produced in the eurozone and in the United States.” Explain the purchasing- powerparity theory of exchange rates, using the euro-dollar exchange rate as an illustration
- Multiple-Choice Question: 1. You planned a trip to Europe far in advance, and budgeted for the trip. When you get home, you find that the trip cost more than you were expecting. How might a change in the exchange rate between Canadian dollars and the Euro (European currency) account for this difference? A. The exchange rate has become less favorable to the Canadian dollar B. The exchange rate has become more favorable to the Canadian dollar C. change in the exchange rate would not explain the difference Please explain the reason of your answer & why can't it be the others.For the statements below indicate if it is true or false. If the statement is false, rewrite so that it is a true statement. Use the space available to answer your question. 1. Foreign exchange markets are markets in which people of one country exchange goods with people from another country. TRUE/False: 2. When the actual foreign exchange rate for the dollar is greater than the equilibrium rate, the dollar is undervalued, meaning that it will buy less in international trade than it will buy at home. TRUE/False : 3. For any given interest rate, the shorter the time period before the receipt a dollar, the lower is its present value. TRUE/False :If a foreign currency appreciates, that country's goods and services become relatively more expensive for Omani buyers. * True False
- If US dollars gets lower interest rates in the United States. How would this affect a fundamental forecast of foreign currencies? How would this affect the forward rate forecast of foreign currencies?Multiple-Choice Question: 1. You planned a trip to Europe far in advance, and budgeted for the trip. When you get home, you find that the trip cost more than you were expecting. How might a change in the exchange rate between Canadian dollars and the Euro (European currency) account for this difference? A. The exchange rate has become less favorable to the Canadian dollar B. The exchange rate has become more favorable to the Canadian dollar C. change in the exchange rate would not explain the difference Please explain the reason of your answer & why can't it be the others. The answer is supposed to be A.If the Swiss franc depreciates against the U.S. dollar, can a dollar buy moreor fewer Swiss francs as a result?