The Great Recession that started in 2007 was triggered by shocks in which of the following economic sectors? Gold market and stock market International trade and foreign exchange markets Real estate and financial markets Consumer and government spending

Real estate and financial markets More test answers on https://studyhippo.com/econ-151-macroeconomics-mcgraw-hill-connect-chapter-9-group-quiz/

How are spot exchange rates in the foreign exchange markets determined? a. By using historical average prices. b. By the relative demand and supply for different currencies. c. By taking the average of a basket of currencies. d. By government decree.

By the relative demand and supply for different currencies. More test answers on https://studyhippo.com/international-business-exam-3/

Which of the following is a key feature of the foreign exchange market? a. The market never sleeps. b. The market is located in London. c. The market is characterized by high transaction costs. d. The market is shut for only three hours.

The market never sleeps. More test answers on https://studyhippo.com/international-business-exam-3/

In the dollar-yen foreign exchange market, if Japanese companies sharply increase their importation of U.S. products, then the:

Supply of yen will increase and the yen will depreciate More test answers on https://studyhippo.com/micro-test/

why are foreign exchange markets necessary?

businesses use it to exchange currency to import goods from other countries More test answers on https://studyhippo.com/economics-unit-5/

Macroeconomics mainly focuses upon: a. the economy as a whole b. international trade and foreign exchange markets c. specific product and resource markets d. individual consumers and producers

a. the economy as a whole More test answers on https://studyhippo.com/chapters-1-4-3/

Foreign exchange Market serves two main functions:

1. To convert the currency of one country into the currency of another. 2. Provide some insurance against foreign exchange risk More test answers on https://studyhippo.com/international-business-the-foreign-exchange-market-chapter-9-notes/

The Great Recession that started in 2007 was triggered by shocks in which of the following economic sectors? A. Gold market and stock market B. International trade and foreign exchange markets C. Real estate and financial markets D. Consumer and government spending

C More test answers on https://studyhippo.com/econ-ch-7-questions/

Definition: Foreign Exchange Market

1) physical and institutional structure, money of one country is exchanged for that of another country 2) determination of the rate of exchange 3) place for physical completion of transactions More test answers on https://studyhippo.com/multinational-business-finance-and-investment/

The rapid rise in the value of the dollar on the foreign exchange market in the 1990s hurt the price competitiveness of many U.S. producers in world markets. U.S. manufacturers that relied heavily on exports saw their export volume and world market share decline. This is an example of: a. income exposure. b. transaction exposure. c. economic exposure. d. translation exposure.

economic exposure More test answers on https://studyhippo.com/international-business-exam-3/

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Foreign Exchange Market Flashcards, test questions and answers

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What is Foreign Exchange Market?

The Foreign Exchange Market (Forex or FX) is a global decentralized market for the trading of currencies. This market determines the foreign exchange rates for every currency and also provides an opportunity for speculation. It includes all of the aspects of buying, selling and exchanging currencies at current or determined prices. In terms of volume traded, it is by far the largest financial market in the world with an average daily trading volume exceeding $5 trillion dollars.The Forex market is open 24 hours a day, five days a week, allowing traders to access their accounts from anywhere around the world at any time. This makes it much easier to manage risk and make quick decisions based on changes in currency values over short periods of time. Unlike other markets, there is no centralized exchange where transactions take place; instead they are conducted through various interbank networks within different countries and regions worldwide. As a result, there are no commissions charged by brokers or banks as these costs are already factored into the price fluctuation. When trading in Forex markets, traders must take into account factors such as economic news releases and geopolitical events that affect currency prices over short-term or long-term timeframes. Traders use technical analysis to determine entry and exit points based on chart patterns while fundamental analysis focuses more heavily on macroeconomic factors such as inflation rate differences between countries that can lead to large price swings over longer periods of time.

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