1) Firms with more foreign currency revenues than foreign currency expenses are most concerned that their home currency will against foreign currencies, and firms with more foreign currency expenses than foreign currency revenues are most concerned that the foreign currency will against their home currency. A) appreciate; appreciate B) depreciate; depreciate C) depreciate; appreciate D) appreciate; depreciate 2) Over the past year, the exchange rate between the euro and the U.S. dollar has changed from EUR1 /USD to EUR 1.10/USD. Over the same time period, the exchange rate between the U.S. dollar and the British pound has changed from USD1.50/GBP to USD2/GBP. From this information, we can conclude that the prices of British goods have for buyers who use the euro. (Hint: Compare the original cross rate with the cross rate a year later.) A) become cheaper B) become more expensive C) remained the same D) Cannot determine based on the information provided. 3) Alpha Lights wishes to buy GBP 10,000. Alpha Light's bank provides the following quotation for the USD/GBP exchange rate: 1.6700 - 1.6800. How many USD would the GBP cost the company? A) USD16,700 B) USD 16,750 C) USD 16,800 D) None of the above