PD Important Questions for International Finance True/False: Under a depreciating U.S Dollar, more foreign tourist can afford to visit U.S while traveling abroad for US citizens becomes more expensive. 2) Under an appreciating US Dollar, U.S consumers get lower prices on foreign goods, however, US exports becomes more expensive abroad. In a forward exchange rate transaction, the buyer and seller are locked into a contract at a fixed price that can not be affected by any changes in the market exchange rates. Capital and financial transactions in the balance of payments refers to the monetary value of international flows associated with transactions in goods, services, income flows and unilateral transfers. The current account of the balance of payment includes all international purchases and sales of assets. A debit transaction is one that leads in a receipt of payments from foreigners. Forward exchange market offers protection from possible exchange-rate fluctuations. > US Dollar Depreciation is a decrease in the number of dollars required to buy a unit of foreign exchange. When a nation experiences a current account deficit, its expenditures for foreign goods and services are greater than the income received from the international sales of its own goods and services. 10) A credit transaction is one that results in a receipt of payments from foreigners. Multiple Choices: > The value of Australian Dollar is $0.73. Yesterday the value of Australian $ was $0.69. The Australian S by depreciated; 5.80 depreciated; 4.00