Solved by verified expert :43)
The exchange rate of currencies between countries affects the prices of the
goods purchased and sold between them.
44)
If the dollar appreciates against the peso it means that U.S. goods become more
expensive in Mexico.
45)
If the dollar depreciates against the euro it means that French-made goods
become more expensive in the United States.
46)
The exchange rate between currencies of different countries is controlled
primarily by supply and demand in currency markets.
47)
If the exchange rate is 0.8 euro per dollar, one dollar is equal to 1.25 euros
48)
The dollar will depreciate against the euro when the European Central Bank
raises interest rates.
49)
The dollar will appreciate if interest rates fall in the United States.
50)
Suppose that you are an Israeli citizen and had invested in a one-year U.S.
bond that yielded 5%. The bond cost $5,000 and paid $5,250 at the end of the
year. At the time you bought the bond, the exchange rate was 3.8
shekels/dollar. How many shekels did the bond cost? If the exchange rate fell
to 3.5 shekels/dollar over this time period, what would the return on your
investment be?
51)
If the current exchange rate is 0.65 British pounds per dollar, what is the
dollar price of one British pound? If the exchange rate changes to 0.70 British
pounds per dollar, what is the new dollar value of one British pound?
52)
What will happen to the exchange rate between the euro and the U.S. dollar if
U.S. interest rates increase?
