1、InternationalFinance1.U.S.exportscreatea A. supplyofforeigncurrenciesandademandfordollarsintheforeignexchangemarkets.B. demandforforeigncurrenciesandasupplyofdollarsintheforeignexchangemarkets.C. supplyofforeigncurrenciesandasupplyofdollarsintheforeignexchangemarkets.D. demandforforeigncurrenci
2、esandademandfordollarsintheforeignexchangemarkets. 2.U.S.imports A. increasetheforeigndemandforforeigncurrencies.B. increasethedomesticdemandforforeigncurrencies.C. decreasetheforeignsupplyofforeigncurrencies.D. increasethedomesticsupplyofforeigncurrencies. 3.U.S.businessesaredemandersofforeign
3、currenciesbecausetheyneedthemto A. sellgoodsandservicesexportedtoforeigncountries.B. payforgoodsandservicesimportedfromforeigncountries.C. receiveinterestpaymentsfromforeigngovernments.D. receiveinterestpaymentsfromforeignbusinesses. 4.FrenchandGermanfarmerswantingtobuyequipmentfromanAmericanma
4、nufacturerbasedintheU.S.willbe A. supplyingdollarsandalsosupplyingeurosintheforeignexchangemarket.B. demandingdollarsandalsodemandingeurosintheforeignexchangemarket.C. supplyingdollarsanddemandingeurosintheforeignexchangemarket.D. supplyingeurosanddemandingdollarsintheforeignexchangemarket. 5.I
5、fafinancialportfoliomanagerintheU.S.buysBritishcompanystocksintheLondonStockExchange,thiswouldinvolve A. ademandforBritishpoundsintheforeignexchangemarket.B. asupplyofBritishpoundsintheforeignexchangemarket.C. noeffectonthedemandforBritishpoundsintheforeignexchangemarket.D. ademandforU.S.dollar
6、sintheforeignexchangemarket. 6.Theequilibriumexchangeratebetweentwocurrenciesisdeterminedbythesupplyanddemandinthe A. tradedgoodsmarkets.B. stockexchangemarkets.C. foreignexchangemarkets.D. moneymarkets. 7.Amarketinwhichthemoneyofonenationisexchangedforthemoneyofanothernationisa A. resourcemar
7、ket.B. bondmarket.C. stockmarket.D. foreignexchangemarket. 8.Theforeignexchangerateisthe A. realrateofinterestonlong-termgovernmentbondsinothernations.B. amountofonenation'scurrencythatcanbepurchasedwithaunitofanothernation
