In general, soft currency should be chosen for exportsand hard currency for imports. ( )
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- The principle of selecting the currency of account in the payment for goods in international trade is [ ] A: hard currency for collection and payment B: hard currency for collection and soft currency for payment C: soft currency for collection and hard currency for payment D: soft currency for collection and payment
- Huge imports were ______ the country’s currency reserves.
- U.S. imports of goods and services will create a __________ foreign currency and a __________ U.S. dollars.
- Assume Countries A, B, and C produce goods that are substitutes of each other and that these countries engage in trade with each other. Assume that Country A's currency floats against Country B's currency, and that Country C's currency is pegged to B's. If A's currency depreciates against B, then A's exports to C should ____, and A's imports from C should ____. A: decrease; increase B: decrease; decrease C: increase; decrease D: increase; increase
- The impact of the appreciation of a country's currency on its import and export revenue is (). A: exports decrease, imports increase B: exports increase, imports decrease C: exports increase, imports increase D: exports decrease, imports decrease
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Which one of the following is not one of the types of foreign currency derivative used to hedge foreign currency risk? A: Currency futures B: Currency options C: Currency default swaps D: Currency swaps
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Suppose you are importer, you will select hard currency to go through your business.
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Over time, a depreciation in the value of a nation’s currency in the foreign exchange market will result in: A: Exports rising and imports falling B: Imports rising and exports falling C: Both imports and exports rising D: Both imports and exports falling
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European currency is also known as A: foreign currency B: offshore currency C: Euro D:
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Compared to currency forward, the advantages of currency furture are