An appreciation in the value of the U.S. dollar against the British pound would tend to:
A: Increase in the spot price of the yen
B: Increase in the forward price of the dollar
C: Sale of dollars in the forward market
D: Purchase of yen in the spot market
A: Increase in the spot price of the yen
B: Increase in the forward price of the dollar
C: Sale of dollars in the forward market
D: Purchase of yen in the spot market
举一反三
- An appreciation in the value of the U.S. dollar against the British pound would tend to: A: Discourage the British from buying American goods B: Discourage Americans from buying British goods C: Increase the number of dollars that could be bought with a pound D: Discourage U.S. tourists from traveling to Britain
- In the foreign exchange market, what could be a possible consequence of an increase in the purchase of stocks of Toyota, a Japanese automobile firm, by U.S. residents? A: Demand for the dollar will increase B: Yen will depreciate C: The dollar will depreciate D: The supply curve for the dollar will shift to the left
- If the U.S. dollar is pegged to gold, then A: the Federal Reserve must adjust the supply of U.S. dollars when the price of gold changes. B: the government must buy and sell gold reserves when the price of the dollar changes. C: the U.S. dollar will not change in value since the price of gold is constant. D: the U.S. dollar would become more valuable than the Euro.
- A weakening of the U.S. dollar with respect to the British pound would likely reduce the U.S. exports to Britain and increase U.S. imports from Britain over time.
- Given Pus and Yus, An increase in the European money supply causes the euro to depreciate against the dollar, but it does not disturb the U.S. money market equilibrium.