Pete 1 pts Question 20 If a foreign currency is expected to substantially against the parent's currency, the parent may prefer to the remittance of subsidiary earnings. none of the options appreciate expedite weaken dolay wession expedite D Question 23 Assume that the Yen and Yuan are highly correlated. A U.S. firm anticipates the equivalent of $1 million cash outflows in Yuan and the equivalent of $1 million cash outflows in Yen. During a cycle, the firm is affected by its exposure. strong dollar: not weak dollar, not strong dollar: favorably weak dollar: favorably 1 pts Question 25 Subsidiary A of Rao Corporation has net inflows of AUD 1,000,000, while Subsidiary B has net outflows of AUD of 1,500,000. The expected exchange rate of the Australian dollar is $.56. What is the net inflow or outflow as measured in USD? ons $275,000 inflow CY $280,000 outflow $500.000 intlow $275,000 outflow Question 17 1 A speculator determines that a movement of FX rates was not related to prior exchange rate values, this implies that a is not valuable for speculating on expected exchange rate movements. technical forecast technique monte carlo simulation O fundamental forecast technique sconometric analysis pus > Question 16 Assuming IFE and IRP hold, foreign currencies with comparatively high interest rates should have forward discounts and those currencies would be expected to depreciate. True False Previous Next Question 15 tes Interest rates in the Australia are 7%, while the interest rate in the U.S. is 5%. The spot rate for the AUD $1.50. According to the International Fisher Effect (IFE), the AUD should adjust to a new level of: cions tery $1.51 $1.42 Stics 5156 5147 Hill Campus ve Previous