ACC 206 QUIZ 6

ACC 206 QUIZ 6

Author: Christine Farr


Under a system of floating exchange rates, the Swiss franc would depreciate in value if which of the following occurs?

Concerning the foreign exchange market, one can best say that:

When the dollar gets stronger

An appreciation in the value of the U.S. dollar against the British pound would tend to:

In the interbank market for foreign exchange, the ____ refers to the difference between the offer rate and the bid rate.

Over time, a depreciation in the value of a nation's currency in the foreign exchange market will result in:

Which financial instrument provides a buyer the right to purchase or sell a fixed amount of currency at a prearranged price, within a few days to a couple of years?

A primary reason that explains the appreciation in the value of the U.S. dollar in the 1980s is:

High real interest rates in the United States tend to:

For purchasing-power parity to exist:

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