Question: Multiple choices: are not a factor that causes currency supply and demand schedules to change. relative inflation rates brelative interest rates iii) relative income
Multiple choices: are not a factor that causes currency supply and demand schedules to change. relative inflation rates brelative interest rates iii) relative income levels expectations All of these are factors that cause currency supply and demand schedules to change. Assume that Canada places a strict quota on goods imported from the United States and that the United States does not retaliate. Holding other factors constant, this event should immediately cause the supply of Canadian dollars to be exchanged for U.S. dollars to and the value of the Canadian dollar to ncrease; increase increase; decline decline; decline decline; increase The value of the curo was $1.30 last week. During last week the euro depreciated by 5 percent. What is the value of the euro today? .$1.365 * $1.235 $1.330 $1.30 Assume that income levels in the United Kingdom start to rise, while U.S. income levels remain unchanged. This will place pressure on the value of the British pound. Also, assume that U.S. interest rates rise, while British interest rates remain unchanged and that no inflation is expected in either country. This will place pressure on the value of the British pound. Downward; downward Upward; downward Upward; upward Downward; upward If the Japanese yen is expected to appreciate against the U.S. dollar and interest rates in the United States and Japan are similar, banks may try speculating on this anticipated exchange rate movement by borrowing investing in Yen; dollars yen;yen Dollars; yen Dollars; dollars and
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
