Demand in market determine the currencys value

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Reference no: EM13921662

1. A ________ exchange rate is the quoted price for a unit of foreign currency to be delivered within a very short period of time.

a. foward

b. spot

2. The Government does not set a _______ exchange rate, which means that supply and demand in the market determine the currency's value.

a. pegged

b. floating

3. When American customers import more from Europe than they export to Europe, the euro ________relative to the dollar.

a. apprecaites

b. depreciates

4. The ___________ of a currency refers to an increase or decrease of the stated par value of a currency whose value is fixed.

a. depreciation or appreciation

b. devaulation or revaluation

5. Under a _____________ floating regime, the government plays a significant role in managing the exchange rate by manipulating the currency's supply and demand.

a. freely

b. managed

6. Currencies under such a regime are _________ currencies.

a. convertible

b. non convertible

Reference no: EM13921662

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