International Finance Theory and Policy
by Steven M. Suranovic

Finance 40

Finance 40

Finance Questions 40 2-1

DIRECTIONS: As in the popular TV game show, you are given an answer to a question and you must respond with the question. For example, if the answer is, "the value of goods and services sold to foreigners", then the correct question is, "What are exports?"

1. An increase in the value of the yen

2. This currency value is expressed by the euro/peso exchange rate.

3. This has happened to the value of the $ if the $/euro exchange rate rises from 1.10$/euro to 1.20$/euro

4. Term used to describe the process of buying low, selling high to make a profit.

5. Term used to describe the exchange rate which appears on a contract to exchange currencies either 30, 60, 90 or 180 days in the future.

6. Term used to describe the exchange rate that prevails for (almost) immediate trades.

7. Term used to describe process of protecting oneself from the riskiness of exchange rate movements.

8. The percentage change in the value of an asset over some period of time.

9. Term used to describe the ease with which an asset can be converted to cash.

10. These three variables influence the rate of return on a foreign deposit.

International Finance Theory and Policy - Chapter 40: Last Updated on 1/6/08