e more foreign capital inflows to buy local currency d. discouraging exports 28 exports more Toyota cars to the U.S, the currency market in Japan becomes a. more supply of US dollars b. more demand for US dollars e. less supply of US dollars d. less demand for US dollars 29 The price at which a dealer will buy another currency is a strike price b. bid price c ask price d. the law of one price 30. The J-Curve Adjustment Path means a. The interest rate will decrease first and then go up during covered interest rate arbitrage b. The exchange rate will decrease first and then go up during covered interest rate arbitrage. c. The balance of trades will decrease first and then go up when the local currency devalues. 31. (a. Dealers b. Market makers c,Brokers d. Arbitragers e.Speculators) bet one side of transaction without necessary risk management. 32. When the domestic interest rate is higher than foreign interest rate, a. People buying foreign currency to earn higher interests. b. When real interest rates are the same for two countries, foreign nominal interest rate is higher C There wil be forward premium in the currency market according to IRP d. Capital flight occurs that local money flies to the other country. Use the information in the table to answer the following question(s) Containers of Digital Cameras Autria has 1000 production units 8 containers/unit Russia has 1000 33. Refer to Table 1.1. Austria has a larger relative advantage over Russia in the production of at a ratio of B) cameras; 8 to 3 C) snowboards; 8 to 3