(please answer questions 7,8,9,and 10 please) (Multiple choice answers given)

QUESTION 7 Which of the following is NOT a possible bid/ask quotation for the Barbados dollar? a. $.51/$.52 b. $.52/$.51 c. $.49/$.50 d. $.50/$.51 1.5 points

QUESTION 8 The value of the Australian dollar (A$) today is $0.73. Yesterday, the value of the Australian dollar was $0.69. The Australian dollar ____ by ____ percent. a. appreciated; 5.80 b. depreciated; 4.00 c. appreciated; 4.00 d. depreciated; 5.80 1 points

QUESTION 9 The equilibrium exchange rate of pounds is $1.70. At an exchange rate of $1.72 per pound, U.S. demand for pounds would ________ the supply of pounds for sale and there would be a _______ of pounds in the foreign exchange market. a. be less than; shortage b. be less than; surplus c. exceed; shortage d. exceed; surplus 1 points

QUESTION 10 The value of the euro was $1.30 last week. During last week the euro depreciated by 5 percent. What is the value of the euro today? a. $1.235 b. $1.365 c. $1.30 d. $1.330 1 points QUESTION 11 If the Fed announces that it will decrease U.S. interest rates, and the European Central Bank takes no action, then the value of the euro will ____ against the value of U.S. dollar (holding other factors constant). a. appreciate b. depreciate c. be unchanged d. depreciate but only briefly