This is a homework project about the ForEx Market. However, I was not able to find the answers online and the concepts are tricky sometimes.

Part 1. Multiple Choice Questions (80%) 1. The term "foreign currency" refers to foreign I. coins II. notes III. bank deposits A) II only. B) II and III only. C) I and II only. D) I, II, and III. Answer: 2. If portable disk players made in China are imported into the United States, the Chinese manufacturer is paid with A) dollars. B) yuan, the Chinese currency. C) international monetary credits. D) euros, or any other third currency. Answer: 3. If the United States sells beef to Japan, the U.S. beef producer is paid with A) dollars. B) yen, the Japanese currency. C) international monetary credits. D) euros, or any other third currency. Answer: 4. When Safeway supermarkets in the United States buys strawberries from Mexico, A) it uses dollars to pay Mexican farmers. B) it uses pesos to pay Mexican farmers. C) it may use any currency it chooses. D) the transaction shows up in the U.S. capital account