Question 1
Exchange rates are reported as fractions with the ________ in the denominator and the ________ in the numerator.
◦ counter rate; base rate
◦ base rate; counter rate
◦ foreign currency; domestic currency
◦ domestic currency; foreign currency
Question 2
If the dollar appreciates against the Irish punt
◦ the U.S. price of Irish goods will rise.
◦ the U.S. exports to Ireland will fall.
◦ then the punt also appreciates against the U.S. dollar.
◦ the U.S. inflation rate will have a tendency to rise.
◦ the Irish exports to the U.S. should decline.