Macro Chapter 15 review

weaking; less

A depreciating US dollar is ____________ because it is worth _________________ in terms of other currencies

Exhange students with a British scholarship studying in Canada

A stronger British pound is beneficial for:

swings in exchange rates

For firms engaged in international lending and borrowing, _______ can have an enormous effect on profits.

Taking a management responsibility

Foreign direct investment is the term used to describe purchases of firms in another country that involve?

the dollar depreciated against the yen

If 112 Japanese yen purchased $1.00 U.S. in 2008 and 83 Japanese yen purchased $1.00 U.S. in 2009, then:

Cause the exchange rate for US currency to depreciate

If the US government uses an expansionary monetary policy to reduce interest rates, then it will?

2010: .12 US dollars; 2012: .15 US dollars

In 2010, $1.00 U.S. bought 8.24 Chinese yuan and in 2012 it bought 6.64 Chinese yuan. How many U.S. dollars could 1 Chinese yuan purchase in 2010 and 2012?

shift the supply curve out, the demand curve shifts in and the value of the dollar decreases

Suppose the situation in which investors in the US are looking to Japan as a place where they should invest for a future high rate of return, while Japanese investors are looking to lower their investments in the US. The combined effect in the dollar exchange market will?

It would depreciate the country's exchange rate and break its hard peg

Why would an expansionary monetary policy no longer be available to combat recession for a country that has pegged its exchange rate?

The Canadian dollar appreciated against the US dollar

if $1.00 US bought $1.40 Canadian dollars in 2006 and 2010 it bought $1 Canadian dollar, then

2010: 113.6 yen, 2013: 107.5 yen

in 2010, 100 Japanese yen purchased .88 US dollars and in 2013, it purchased .93 US dollars. How much was 1 US dollar worth in Japanese yen, in 2010 and 2013?

an Iowa travel firm that arranges vacation tours for local seniors to Hawaii

one of the following groups is not participating in the foreign exchange markets

foreign exchange market

people or firms use one currency to purchase another currency at the ?

exchange rates or rates of return

portfolio investments are often based on beliefs about how __________ are likely to move in the near future

French Franc

which is no longer one of the most commonly traded currencies in foreign exchange markets