An exchange rate system in which the exchange rate for converting one currency into another is set by international governmental agreement is called a ________ system.
A) floating exchange-rate
B) fixed exchange-rate
C) cross rate
D) spot rate
Question 2
Suppose Country A has a currency called the Pulse (P). At the beginning of the year, the exchange rate between the Pulse and the U.S. dollar was P150/.
The inflation rate in Country A is running at an annual rate of 250 percent, whereas inflation in the U.S. is running at 2 percent. Which of the following would most likely be the new exchange rate that Color-Me-Green can expect at the end of the year?
A) P525/
B) P514.70/
C) P43.71/
D) 43.71/P
Question 3
Suppose Sam then noticed that the actual euro/dollar exchange rate on currency markets is 1.2/, and that a kilogram of wheat still costs 1 in the U.S. and 1.5 in France. Sam then knows that ________.
A) the expected exchange rate between the euro and the dollar is 1.5/
B) wheat is priced higher in France
C) wheat is priced lower in France
D) an arbitrage opportunity does not exist in the international wheat market
Question 4
In Country B, Color-Me-Green is faced with a tight labor market and a low unemployment rate. This low unemployment rate will most likely result in ________.
A) lower interest rates
B) lower wages for workers
C) higher purchasing power
D) higher rate of inflation
The mammalian urinary system including the basic functional unit of the nephron.
external structure of female reproductive system
Procedures and Diagnostic Tests Related to the Urinary System
The urinary system.
The respiratory system and the process of gas exchange
Outgroup role in relative rate test