PLEASE ANSWER ALL

1. (TRUE or FALSE?) The bid rate is always higher than the ask rate

2. (TRUE or FALSE?) A higher inflation rate in the United States than in the Eurozone will increase Eurozone exports to the United States and reduce U.S. exports to the Eurozone.

3. (TRUE or FALSE?) Other things being equal, a nation with strong economic growth will attract investment capital leading to a stronger currency.

4. (TRUE or FALSE?) The Fed can sterilize the impact of its foreign exchange market intervention on the domestic money supply through an open-market operation, which is just the sale or purchase of treasury securities.

5. (TRUE or FALSE?) When a government determines the stated par value of a pegged currency, an increase in value is called devaluation.

6. (TRUE or FALSE?) Nations with strong growth prospects will see an exodus of capital and weaker currencies.

7. (TRUE or FALSE?) The central bank acts as a lender of last resort to banks and other institutions with the dollarization and the government has full control over monetary policy.

8. (TRUE or FALSE?) A higher rate of inflation in the United States than in Europe will lead to a depreciation of the dollar relative to the euro.

9. (TRUE or FALSE?) Currency dealers profit from the spread between the bid and ask rates by buying low at the bid rates and selling high at the ask rates.

10. (TRUE or FALSE?) Inflation rates, interest rates, economic growth, and political and economic risks do not influence currency supply and demand.