Question 1
If the exchange rate makes foreign goods ________ expensive, demand will increase and imports are likely to ________.
◦ less; fall
◦ less: rise
◦ more; fall
◦ more; rise
Question 2
If you have the exchange rates for converting U.S. dollars to yen and U.S. dollars to the euro, you could convert from yen to euros by using a
◦ Spot rate.
◦ Indirect rate.
◦ Counter rate.
◦ Cross rate.