money-and-bank-test-bankchap17.doc

1、The Economics of Money, Banking, and Financial Markets, 9e (Mishkin)Chapter 17 The Foreign Exchange Market17.1 Foreign Exchange Market1) The exchange rate isA) the price of one currency relative to gold.B) the value of a currency relative to inflation.C) the change in the value of money over time.D)

2、 the price of one currency relative to another.Answer: DQues Status: Previous Edition2) Exchange rates are determined inA) the money market.B) the foreign exchange market.C) the stock market.D) the capital market.Answer: BQues Status: Previous Edition3) Although foreign exchange market trades are sa

3、id to involve the buying and selling of currencies, most trades involve the buying and selling ofA) bank deposits denominated in different currencies.B) SDRs.C) gold.D) ECUs.Answer: AQues Status: Previous Edition4) The immediate (two-day) exchange of one currency for another is aA) forward transacti

4、on.B) spot transaction.C) money transaction.D) exchange transaction.Answer: BQues Status: Previous Edition5) An agreement to exchange dollar bank deposits for euro bank deposits in one month is aA) spot transaction.B) future transaction.C) forward transaction.D) deposit transaction.Answer: CQues Sta

5、tus: Previous Edition6) Today 1 euro can be purchased for $1.10. This is theA) spot exchange rate.B) forward exchange rate.C) fixed exchange rate.D) financial exchange rate.Answer: AQues Status: Previous Edition7) In an agreement to exchange dollars for euros in three months at a price of $0.90 per

6、euro, the price is theA) spot exchange rate.B) money exchange rate.C) forward exchange rate.D) fixed exchange rate.Answer: CQues Status: Previous Edition8) When the value of the British pound changes from $1.25 to $1.50, the pound has _ and the U.S. dollar has _.A) appreciated; appreciatedB) depreci

7、ated; appreciatedC) appreciated; depreciatedD) depreciated; depreciatedAnswer: CQues Status: Previous Edition9) When the value of the British pound changes from $1.50 to $1.25, then the pound has _ and the U.S. dollar has _.A) appreciated; appreciatedB) depreciated; appreciatedC) appreciated; deprec

8、iatedD) depreciated; depreciatedAnswer: BQues Status: Previous Edition10) When the value of the dollar changes from 0.5 to 0.75, then the British pound has _ and the U.S. dollar has _.A) appreciated; appreciatedB) depreciated; appreciatedC) appreciated; depreciatedD) depreciated; depreciatedAnswer:

9、BQues Status: Previous Edition11) When the value of the dollar changes from 0.75 to 0.5, then the British pound has _ and the U.S. dollar has _.A) appreciated; appreciatedB) depreciated; appreciatedC) appreciated; depreciatedD) depreciated; depreciatedAnswer: CQues Status: Previous Edition12) When t

10、he exchange rate for the Mexican peso changes from 9 pesos to the U.S. dollar to 10 pesos to the U.S. dollar, then the Mexican peso has _ and the U.S. dollar has _.A) appreciated; appreciatedB) depreciated; appreciatedC) appreciated; depreciatedD) depreciated; depreciatedAnswer: BQues Status: Previo

11、us Edition13) When the exchange rate for the Mexican peso changes from 10 pesos to the U.S dollar to 9 pesos to the U.S. dollar, then the Mexican peso has _ and the U.S. dollar has _.A) appreciated; appreciatedB) depreciated; appreciatedC) appreciated; depreciatedD) depreciated; depreciatedAnswer: C

12、Ques Status: Previous Edition14) On January 25, 2009, one U.S. dollar traded on the foreign exchange market for about 0.75 euros. Therefore, one euro would have purchased about _ U.S. dollars.A) 0.75B) 1.00C) 1.33D) 1.75Answer: CQues Status: Revised15) On January 25, 2009, one U.S. dollar traded on

13、the foreign exchange market for about 49.0 Indian rupees. Thus, one Indian rupee would have purchased about _ U.S. dollars.A) 0.02B) 1.20C) 7.00D) 49.0Answer: AQues Status: Revised16) On January 25, 2009, one U.S. dollar traded on the foreign exchange market for about 1.15 Swiss francs. Therefore, o

14、ne Swiss franc would have purchased about _ U.S. dollars.A) 0.30B) 0.87C) 1.15D) 3.10Answer: BQues Status: Revised17) On January 25, 2009, one U.S. dollar traded on the foreign exchange market for about 3.33 Romanian new lei. Therefore, one Romanian new lei would have purchased about _ U.S. dollars.

15、A) 0.30B) 1.86C) 2.86D) 3.33Answer: AQues Status: Revised18) If the U.S. dollar appreciates from 1.25 Swiss franc per U.S. dollar to 1.5 francs per dollar, then the franc depreciates from _ U.S. dollars per franc to _ U.S. dollars per franc. A) 0.80; 0.67B) 0.67; 0.80C) 0.50; 0.33D) 0.33; 0.50Answer: AQues Status: Previous Edition19) If