International Business
Management Chapter 8 Test
Bank Questions and
Answers Study Guide
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The rising value of the Canadian dollar relative to the U.S. dollar has which of the following effects?
A. Canadian imports to the U.S are down
B. Canadian vacationers pay higher costs for trips to the U.S
C. Canadian consumers pay higher prices for US made goods
D. Canadian retailers in border towns lose customers to US stores
D
The rising value of the Canadian dollar relative to the U.S. dollar has all of the following effects EXCEPT that ________ .
A) Canadian exports to the U.S. are down
B) Canadian vacationers pay higher costs for trips to the U.S.
C) Canadian consumers pay lower prices for U.S.-made goods
D) Canadian retailers in border towns lose customers to U.S. stores
B
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What most likely happens when the price of yen falls?
A. the quantity of yen demanded goes down
B. the demand curve slopes downward
C. the demand curve slopes upward
D. the value of yen fluctuates
C
Which of the following is not an example of a participant in the foreign exchange market?
A. Pakistani tourists exchanging rupees for British pounds at a bank in London
B. British retailer Marks and Spenser purchasing appliances from a British supplier
C. the U.S. government arranging a multimillion-dollar loan to Mexico
D. Toyota exporting cars to Canada from factories in Japan
B
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A call option ________.
A. is a privately traded currency vehicle available only through stockbrokers
B. grants the right to buy a specified amount of foreign currency at a set price
C. allows the holder to buy foreign exchange at the wholesale rate
D. is another term for currency future
B
________ is a commodity that consists of currencies issued by countries other than one's own.
A. Eurozone
B. foreign exchange
C. floating exchange
D. international monetary fund
B
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