Question: I'm on time limit please help. Question 1 (4 points) Say you need the Euro a year from now and to avoid the risk of

 I'm on time limit please help. Question 1 (4 points) Sayyou need the Euro a year from now and to avoid therisk of currency fluctuation you buy the Euro in the Spot marketor in the forward market. This action is called, speculation Onone of

I'm on time limit please help.

Question 1 (4 points) Say you need the Euro a year from now and to avoid the risk of currency fluctuation you buy the Euro in the Spot market or in the forward market. This action is called, speculation Onone of the answers are correct arbitraging O hedging Question 4 (4 points) Increase in productivity of U.S. workers most likely will not cause the value of the Dollar to change will cause the Dollar to depreciate will cause the Dollar to appreciate none of the answers are correct Question 6 (4 points) The expectation that the U.S. Dollar will depreciate none of the answers are correct will not cause the value of the Dollar to change will cause the Dollar to depreciate will cause the Dollar to appreciate Question 10 (4 points) the purchasing power of the currency is measured by Oreal GDP O real exchange rates O nominal exchange rates O nominal GDP

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