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BUSI 604 Test 2. Question And Answers Latest Updated .
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BUSI 604 Test 2. Question And Answers LatestUpdated 2024-2025.
• Question 1
2 out of 2 points
Eurocurrency and Eurobanks do not necessarily mean the currencies or the banks are
European.
Selected
Tru
Answer:
e
• Question 2
2 out of 2 points
The end result of the global competition is higher ( ) and lower ( )
for consumers.
Selected
quality products;
Answer:
prices
• Question 3
2 out of 2 points
Purchasing Power Parity has an impact on exchange rates and indicates the current
level of inflation of one currency against another.
Selected
Tru
Answer:
e
• Question 4
2 out of 2 points
While hedging may protect against ( ), it may eliminate a potential
for unexpected ( ).
Selected
loss;
Answer:
gain
• Question 5
2 out of 2 points
The economies of the world have become highly interdependent because of
improvements in communication and transportation technologies and the lowering of
barriers to trade.
Selected
Tru
Answer:
e
• Question 6
2 out of 2 points
Volatility represents the possibility of a change in exchange rates projected over a year.
Selected
Tru
Answer:
e
,BUSI 604 Test 2. Question And Answers Latest
Updated 2024-2025.
• Question 7
2 out of 2 points
If a currency price is expected to rise in the future, a buyer pays a higher price, which is
considered a forward discount.
Selected
Fals
Answer:
e
, BUSI 604 Test 2. Question And Answers Latest
Updated 2024-2025.
• Question 8
2 out of 2 points
Traders who ( ) are taking risks (staying open) because they buy and sell
currencies based on the predicted rise and fall in price of a given currency.
Selected
specul
Answer:
ate
• Question 9
2 out of 2 points
( ) is considered a sign of economic recovery and stabilization but makes the
currency of a country more expensive compared to other currencies, having a direct
inverse effect on exports and imports.
Selected
Revaluati
Answer:
on
• Question 10
2 out of 2 points
The difference between a ( ) rate and a ( ) rate is termed a forward
discount.
Selected
spot and
Answer:
forward
• Question 11
2 out of 2 points
( ) and ( ) quotation are also referred to as American and European
Quotes.
Selected
direct and
Answer:
indirect
• Question 12
2 out of 2 points
The public begins to experience the effects of deflation with an expanding money supply.
Selected
Fals
Answer:
e
• Question 13
2 out of 2 points
A currency board is a government’s bank and is capable of bailing out a failing bank.
Selected
Fals
Answer:
e
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