Participants in the foreign exchange market trade for all of the following reasons EXCEPT Select one: O a. to acquire the currency necessary to buy imports in their home country. O b. to earn short-term profits from fluctuations in exchange rates. O c. to protect themselves from loss resulting from changes in exchange rates. O d. to acquire the foreign currency necessary to buy goods and services from other countries.
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- On the foreign exchange market, an increase in a country's exchange rate O a. decreases the demand for its currency and shifts the demand curve leftward. O b. decreases the quantity demanded of its currency and leads to a movement up along the demand curve. decreases the demand for its currency and shifts the demand curve rightward. O d. increases the quantity demanded of its currency and leads to a movement down along the demand curve. O . increases the quantity demanded of its currency and leads to a movement up along the demand curve.The law of demand for foreign exchange tells us that other things remaining the same, Select one: O A. the higher the exchange rate, the greater is the supply of Canadian dollars. O B. the higher the exchange rate, the greater is the demand for Canadian dollars. O C. the lower the exchange rate, the greater is the supply of Canadian dollars. O D. the higher the exchange rate, the greater is the quantity of Canadian dollars demanded. O E. the higher the exchange rate, the smaller is the quantity of Canadian dollars demanded.What does it mean to describe the foreign-exchange market as an "over-the-counter market"? O A. The market consists of customers buying and selling in the foreign-exchange market directly. O B. The market consists of market makers linked together by computers. OC. The market consists of customers linked together by computers. O D. The market is a physical place where currencies are traded.
- In the foreign exchange market, an increase in the U.S. interest rate leads to in the exchange rate because the supply of dollars a fall; increases O b. no change; does not change Ос a rise; decreases O d. a rise; increases O . a fall; decreasesHow will an increase in remittance flows to your country during the Christmas Season affect the market for foreign exchange? Select one: O a. Outward shift of the demand curve, real exchange rate rises and the balance of trade rises O b. Outward shift of the supply curve, real exchange rate falls and the balance of trade falls O c. Inward shift of the supply curve, real exchange rate rises and the balance of trade rises O d. Inward shift of the demand curve, real exchange rate falls and the balance of trade falls е. Inward shift of the demand curve, real exchange rate rises and the balance of trade fallsWhat happens if there is a shortage or a surplus of Canadian dollars in the foreign exchange market? *** If a shortage of Canadian dollars occurs in the foreign exchange market, the and the exchange rate A O A. quantity of Canadian dollars demanded increases and the quantity of Canadian dollars supplied decreases; falls OB. demand for Canadian dollars increases and the supply of Canadian dollars decreases; rises OC. quantity of Canadian dollars demanded decreases and the quantity of Canadian dollars supplied increases; COLL 120- 110 100+ 90- 80- 70- Exchange rate (U.S. cents per Canadian dollar) S 60+ D
- If Italian demand for Canadian lumber decreases, the supply of Canadian dollars to the foreign-exchange market will and the demand for euros will therefore O A. increase; increase O B. decrease; increase OC. decrease; decrease O D. remain the same; remain the same E. increase; decreaseWhat is the exports effect? The exports effect is the result that the lower the exchange rate, other things remaining the same, the O A. higher are the prices of Canadian-produced goods and services to foreigners and the greater is the volume of Canadian imports O B. lower are the prices of foreign-produced goods and services to Canadians and the greater is the volume of Canadian exports O C. higher are the prices of foreign-produced goods and services to Canadians and the greater is the volume of Canadian imports O D. lower are the prices of Canadian-produced goods and services to foreigners and the greater is the volume of Canadian exports Click to select your answer and then click Check Answer. All parts showing Clear All Check Answer P Type here to search 立How will an increase in remittance flows to your country during the Christmas Season affect the market for foreign exchange? Select one: O a. Inward shift of the demand curve, real exchange rate falls and the balance of trade falls Ob. Outward shift of the demand curve, real exchange rate rises and the balance of trade rises Inward shift of the demand curve, real exchange rate rises and the balance of trade falls Inward shift of the supply curve, real exchange rate rises and the balance of trade rises Outward shift of the supply curve, real exchange rate falls and the balance of trade falls pe here to search. la
- Which is an incorrect statement about the balance of payments accounts? O A. Any transaction involving a flow of funds out of a country is a negative item in the country's balance of payments. B. The balance of payments accounts consist of the current account and the financial account. c. The financial account measures a country's trade in currently produced goods and services. O D. Any transaction involving a flow of funds into a country is a positive item in the country's balance of payments.Determine which account of the Balance-of-Payments is affected by the following transaction: You travel to the United States for holiday and spend US$500 Select one: O a. Current Account - Imports O b. Capital Account - Portfolio Investment O c Current Account - Exports O d. Capital Account Foreign Direct Investment O e. Current Account- TransfersDetermine which account of the Balance-of-Payments is affected the following transaction: National Commercial Bank, a local company, pays US$1 million in dividends to foreign shareholders. Select one: a. Current Account Transfers O b. Current Account Imports O c. Capital Account Portfolio Investment d. Capital Account Foreign Direct Investment O e. Current Account - Exports