BUSI 600 FINAL EXAM / BUSI600 FINAL EXAM:LATEST-LIBERTY UNIVERSITY

BUSI 600 FINAL EXAM



Question 1

2 out of 2 points

Fixed exchange rates, also known as pegged exchange rates, occur when a

government or central bank ties the official exchange rate to another

country’s currency or the price of gold.

Selected Answer:

True

Question 2

2 out of 2 points

The FX swap of currency amounts is normally variable.

Selected Answer:

False

,Question 3

2 out of 2 points

Purchasing Power Parity has an impact on exchange rates and indicates the current

level of inflation of one currency against another.

Selected Answer:

True

Question 4

2 out of 2 points

Hedging is described as measures taken by a company or corporation to protect

itself from the loss that may occur because of fluctuations in the exchange

rate of currency.

Selected Answer:

True

Question 5

2 out of 2 points

, Since the world thrives to trade and does not have a uniformed international

currency, the exchange rate from one currency to another is determined by

(______) and (________) on a given day on the FX Market.

Selected Answer:

supply and demand

Question 6

0 out of 2 points

In the U.S., the Security Exchange Commission monitors activities of exchange

markets and OTC markets.

Selected Answer:

True

Question 7

The USD remains the world’s leading currency.

Selected Answer:

TRUE

Question 8