If the foreign exchange marketi already reflected in today's exchange rates A) semistrong and weakform efficient C) semistrong-form efficient then all relevant public information to B) strong form officient D) weak-foam effident 12) Which of the following is not one of the major reasons for MNCS to forecast exchange rates? A) to determine whether to require the subsidiary to remit the funds or invest them focally B) to decide in which foreign market to invest the excess cash C) to decide where to borrow at the lowest cost D) to speculate on the exchange rate movements 12) 13) -------- In which their home currency's value is same to a foreign currency or to soment of account. A) freely floating B) Fixed C) managed float D) ped 14) To force the dollar to depreciate, the central bank can ----------- by exchanging dollars that it holds as reserves for other foreign currencies in the foreign exchange market. A) sterilized intervention B) nonsterilized intervention C) direct intervention D) indirect intervention 15) Sensitivity analysis allows for all of the following except: A) consideration of alternative scenarios B) focus on a single point estimate of future exchange rates. C) development of a range of possible future values D) accountability for uncertainty 16) A depreciation of the dollar causes A) an increase in U.S. imports. C) an increase in the prices of U.S. imports. B) an increase in the prices of U.S. exports. D) a decrease in US. exports 17) Purchasing power parity is used in: A) fundamental forecasting C) Accounting-based forecasting B) market-based accounting D) technical forecasting 18) ------------ Involves the use of historical exchange rate data to predict future value A) Market-based forecasting B) Technical forecasting C) Fundamental forecasting D) Mixed forecasting 19) ---------- Corporations that issue bonds to secure long-term funds may consider denominating the bonds in foreign currencies. A) short-term investment decision B) earnings assessment C) capital budgeting decision D) long-term financing decision 20) A rise in the real exchange rate is called A) a real devaluation. C) a real appreciation. B) a real bargain D) a real depreciation