BUSI 604 Test 2. Questions And Answers. Latest 2020/21. A+ Graded,Course 202020 Spring 2020 BUSI 604-B04 LUO
Test Test 2
Started 3/6/20 10:47
... [Show More] PM
Submitted 3/6/20 11:49 PM
Due Date 3/6/20 11:59 PM
Status Completed
Attempt Score 142 out of 150 points
Time Elapsed 1 hour, 1 minute out of 1 hour and 15 minutes
Instructions Time limit: 1 hour and 15 minutes
75 true/false and multiple-choice questions
Open-book/open-notes
Do not hit the BACK button as this will lock you out of the test.
The timer will continue if you leave this test without submitting it.
Results Displayed Submitted Answers, Feedback
Question 1
2 out of 2 points
The most important issue in understanding the effects of exchange rates on business is its
(________).
Selected Answer: Volatility
Question 2
2 out of 2 points
Many nations restrict hedging of their currencies due to their national and international policies and
interests.
false
Selected Answer: False
Question 3
2 out of 2 points
Since the world thrives to trade and does not have a uniformed international currency, the exchange
rate from one currency to another is determined by (______) and (________) on a given day on the
FX Market.
Selected Answer: supply and demand
Question 4
2 out of 2 points
A simpler way to calculate purchasing power parity between two countries is to compare the price
of a (________) good that is in fact identical across countries.
Selected Answer: Standard
Question 5
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 Answer: True
Question 6
2 out of 2 points
(________) and (_________) quotation are also referred to as American and European Quotes.
Selected Answer: direct and indirect
Question 7
2 out of 2 points
The public begins to experience the effects of deflation with an expanding money supply.
Selected Answer: False
Question 8
2 out of 2 points
Consumers attempt to offset inflation by exchanging (_________) for something that is perceived to
hold a value better such as property, gold, or foreign currencies.
Selected Answer: lower-value currency
Question 9
0 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 Answer: False
Question 10
0 out of 2 points
Forward rates are typically cheaper than spot rates.
Selected Answer: False
Question 11
2 out of 2 points
(_________) are used as an alternative to borrowing and lending in the Eurodollar and other
offshore markets.
Selected Answer: FX swaps
Question 12
2 out of 2 points
(__________) essentially decreases a consumer’s purchasing power by making goods and services
more expensive.
Selected Answer: Inflation
Question 13
2 out of 2 points
The FX swap of currency amounts is normally variable.
Selected Answer: False
Question 14
2 out of 2 points
The Foreign Exchange Market is a market place where the exchange rate is determined and where
transactions take place.
Selected Answer: True
Question 15
2 out of 2 points
Only the USD and Japanese Yen are quoted by one unit price; all other currencies are quoted in one
hundred units.
Selected Answer: False
Question 16
2 out of 2 points
Global Financial Markets include both(__________) and (________) market places that make the
cross-border exchange of goods and services between buyers and sellers possible.
Selected Answer: physical and virtual [Show Less]