Chapter 9 Essay
A stronger Korean won, remembering that Kia cars sold in the United States are paid for in dollars, means what for Kia?
A. a need to hedge Japanese yen
B. a use for the Euro, a neutral currency
C. less profit
D. a use for gold to protect against currency fluctuations
E. more profit
The _____________ is a market for converting the currency of one country into that of another.
A. foreign exchange market
B. cross-cultural interchange
C. financial barter market
D. monetary replacement market
E. international currency spot market
The rate at which one currency is converted into another is called the ___________.
A. replacement …show more content…
C. sets interest rates charged to foreign investors
D. arbitrates disputes between trade partners
E. reduces trade imbalances between countries
14. Tourists are minor participants in
A. currency conversion exchange
B. capital venturing.
C. foreign traveling.
E. foreign exchange market.
15. Canadian businesses will normally use the ________________ in international transactions.
A. The German mark
B. The Euro
C. The U.S. dollar
D. The Japanese yen
E. The British pound
16. Small Canadian businesses will be ____________ than large Canadian businesses to be exposed to currency risk associated with the Canadian dollar.
A. less likely
D. probably likely
E. more likely
17. Which of the following is not one of the four main uses that international businesses have for the foreign exchange market?
A.International businesses use foreign exchange markets to convert money they earn in foreign currencies to their home currencies
B. International businesses use foreign exchange markets in determining domestic wage rates
C International businesses use foreign exchange markets when they have spare cash that they wish to
. invest for short terms in money markets
D. Currency speculation
E. Short term money market investments
18. _____________ typically involves the short-term movement of funds from one currency to another in the hopes of profiting from shifts in exchange rates.
A. Capital venturing