• 2022-06-19
    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
  • C

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    • 0

      If the price of British pounds in terms of the U.S. dollars is $1.80 per pound, then the price of U.S. dollars in terms of British pounds is:

    • 1

      Low real interest rates in the United States tend to: A: Decrease the demand for dollars, causing the dollar to depreciate B: Decrease the demand for dollars, causing the dollar to appreciate C: Increase the demand for dollars, causing the dollar to depreciate D: Increase the demand for dollars, causing the dollar to appreciate

    • 2

      If the Fed wants to depreciate the U.S. dollar against the British pound, it will ________. A: sell foreign exchange B: decrease the money supply C: sell British pounds D: sell U.S. dollars

    • 3

      If the spot exchange rate is £1=$1.50 when the market opens, and £1=$1.48 at the end of the day, the pound has appreciated, and the dollar has depreciated.

    • 4

      An increase in market supply and an increase in market demand will result in A: A decrease in equilibrium price and an increase in equilibrium quantity B: A decrease in equilibrium price - the change in equilibrium quantity is indeterminate C: An increase in equilibrium quantity and the change in price is unclear D: all of above