changes in the exchange rate represents a depreciation of the dollar? A. 100 yen $1 to 110yen-$1 C. 1 peso. $10 to 1 pesos $11 D. 200 francs $10 to 250 francs E none of the above $10 25) Which of the following transactions would be recorded as a credit in the U.S. current account? A A Japanese bank's purchase of IBM stock. B. A Japanese consumers purchase of an Apple computer C. An American tourist's payment to a Japanese hotel. D. An American consumers purchase of a Toshiba VCR. 26) Which of the following theories identifies the non-transferability of resources as a reason for international business? A B. theory of comparative advantage C. product cycle theory D. none of the above imperfect markets theory. 27) LIBOR is: A the maximum interest rate offered on bonds that are issued in London. B. the average inflation rate in European countries. C. the maximum loan rate ceiling on Eurocurrency loans D. the maximum deposit rate ceiling on Eurocurrency deposits. E. the interest rate commonly charged for loans between Eurobanks. 28) ru.S. inflation suddenly increased while European inflation stayed the sarme, there would be: A an increased U.S. demand for euros and an increased supply of euros for sale. B. a decreased U.S. demand for euros and an increased supply of euros for sale C a decreased U.S. demand for euros and a decreased supply of euros for sale D. an increased U.S. demand for euros and a decreased supply of euros for sale. 29) are most commonly classifled as a direct foreign investment A Foreign acquisitions B. Purchases of international stocks C. Licensing agreements D. Exporting transactions 30) A large increase in the income level in Mexico along with no growth in the U.S income level is normally expected to cause (assuming no change in interest rates or other factors) a(n)in Mexican demand for U.S. goods, the Mexican peso should A increase; appreciate B. increase, depreciate C. decrease, depreciate D. decrease; appreciate 31) Which of the following will most likely cause a nations curency to appreciate on the foreign exchange market? A B. C. A decrease in domestic interest rates An increase in foreign interest rates Domestic inflation of 10 percent while the nation's trading partners are experiencing stable prices D. Stable domestic prices while the nation's trading partners are experiencing 10 percent inflation