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strayer fin534 quiz 10




Question;Finance 534 week 11 quiz 10;? Question;1;Suppose;DeGraw Corporation, a U.S. exporter, sold a solar heating station to a Japanese;customer at a price of 143.5 million yen, when the exchange rate was 140 yen;per dollar. In order to close the sale;DeGraw agreed to make the bill payable in yen, thus agreeing to take some;exchange rate risk for the transaction.;The terms were net 6 months. If;the yen fell against the dollar such that one dollar would buy 154.4 yen when;the invoice was paid, what dollar amount would DeGraw actually receive after it;exchanged yen for U.S. dollars?;Correct Answer;$;? Question;2;Suppose;144 yen could be purchased in the foreign exchange market for one U.S. dollar;today. If the yen depreciates by 8.0%;tomorrow, how many yen could one U.S. dollar buy tomorrow?;Correct Answer;? Question;3;Suppose;one British pound can purchase 1.82 U.S. dollars today in the foreign exchange;market, and currency forecasters predict that the U.S. dollar will depreciate;by 12.0% against the pound over the next 30 days. How many dollars will a pound;buy in 30 days?;Answer;Correct Answer;? Question;4;Suppose 6 months ago a Swiss;investor bought a 6-month U.S. Treasury bill at a price of $9,708.74, with a;maturity value of $10,000. The exchange;rate at that time was 1.420 Swiss francs per dollar. Today, at maturity, the exchange rate is;1.324 Swiss francs per dollar. What is;the annualized rate of return to the Swiss investor?;Correct Answer;%;? Question;5;A box;of candy costs 28.80 Swiss francs in Switzerland and $20 in the United;States. Assuming that purchasing power;parity (PPP) holds, what is the current exchange rate?;Correct Answer;1;? Question;6;Suppose;one year ago, Hein Company had inventory in Britain valued at 240,000;pounds. The exchange rate for dollars to;pounds was 1? = 2 U.S. dollars. This;year the exchange rate is 1? = 1.82 U.S. dollars. The inventory in Britain is still valued at;240,000 pounds. What is the gain or loss;in inventory value in U.S. dollars as a result of the change in exchange rates?;Correct Answer;? Question;7;Which;of the following is NOT a reason why companies move into international;operations?;Correct Answer:.;? Question;8;If one;U.S. dollar buys 1.64 Canadian dollars, how many U.S. dollars can you purchase;for one Canadian dollar?;Correct Answer;? Question;9;If the;inflation rate in the United States is greater than the inflation rate in;Britain, other things held constant, the British pound will;Correct Answer;? Question;10;In;1985, a given Japanese imported automobile sold for 1,476,000 yen, or;$8,200. If the car still sold for the;same amount of yen today but the current exchange rate is 144 yen per dollar;what would the car be selling for today in U.S. dollars?;Correct Answer;$;? Question;11;Suppose;the exchange rate between U.S. dollars and Swiss francs is SF 1.41 = $1.00, and;the exchange rate between the U.S. dollar and the euro is $1.00 = 1.64;euros. What is the cross-rate of Swiss;francs to euros?;Correct Answer;? Question;12;Suppose;hockey skates sell in Canada for 105 Canadian dollars, and 1 Canadian dollar;equals 0.71 U.S. dollars. If purchasing;power parity (PPP) holds, what is the price of hockey skates in the United;States?;Correct Answer;? Question;13;If one;Swiss franc can purchase $0.71 U.S. dollars, how many Swiss francs can one U.S.;dollar buy?;Correct Answer;? Question;14;2 out of 2 points;Suppose;90-day investments in Britain have a 6% annualized return and a 1.5% quarterly;(90-day) return. In the U.S., 90-day;investments of similar risk have a 4% annualized return and a 1% quarterly;(90-day) return. In the 90-day forward;market, 1 British pound equals $1.65. If;interest rate parity holds, what is the spot exchange rate?;Correct Answer;? Question;15;Which;of the following statements is NOT CORRECT?;Correct Answer


Paper#49856 | Written in 18-Jul-2015

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