21- If the demand for dollars outstrips its supply and if the supply of Japanese yen is greater than the demand for it, what will happen? Multiple Choice

The dollar will depreciate against the yen.

The exchange rates will remain the same.

The yen will appreciate against the dollar.

The dollar will appreciate against the yen.

22- London Luggage is a British multinational company with operations in 120 countries around the world. It is the companys policy to staff all the key positions in foreign operations with managers from Great Britain. What type of staffing policy does the company use? Multiple Choice

geocentric

eurocentric

ethnocentric

polycentric

23- Assume that a European nation operates under a fixed exchange rate regime. What would occur if this nation rapidly increased its money supply by printing more currency? Multiple Choice

It would lead to price deflation in the country.

It would lead to an increase in the worth of the currency.

The prices of imports would become more attractive in the country.

The country's goods would be highly competitive in world markets.

24- With which statement would a follower of the inefficient market school of thought agree? Multiple Choice

Forward exchange rates do the best possible job of forecasting future spot exchange rates.

Forward rates reflect all available information about likely future changes in exchange rates.

Companies can optimize their foreign exchange transactions by using forward markets.

Companies would be better off investing in foreign exchange forecasting services.