Question Details

If one U.S. dollar buys 1.64 German deutsche marks, how many
dollars can you purchase for one German mark 



i. When the value of the U.S. dollar appreciates against another
country's currency, we may purchase more of the foreign currency
per dollar.
a. True
b. False

ii. Which of the following are reasons why companies move into
international operations?
a. To take advantage of lower production costs in regions of
inexpensive labor.
b. To develop new markets for their finished products.
c. To better serve their primary customers.
d. Because important raw materials are located abroad.
e. All of the above.

iii. If one U.S. dollar buys 1.64 German deutsche marks, how many
dollars can you purchase for one German mark ?
a. 1.64
b. 3.28
c. 0.61
d. 1.00
e. 0.37

iv. Suppose that 288 yen could be purchased in the foreign exchange
market for two U.S. dollars today. If the yen is expected to
depreciate by 8 percent tomorrow, how many yen could two U.S.
dollars buy tomorrow?
a. 311 yen
b. 288 yen
c. 144 yen
d. 267 yen
e. 156 yen

v. One British pound can purchase 1.82 U.S. dollars today in the
foreign exchange market and currency forecasters predict that the
U.S. dollar will depreciate by 12 percent against the pound over
the next 30 days. How many dollars will a pound buy in 30 days?
a. 1.82
b. 3.64
c. 1.12
d. 2.04
e. 1.63



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