Question
Q1)Eurodollars are which of the following? Eurodollars are also known as euros, and are the currency of the eurozone monetary union US dollars in bank
Q1)Eurodollars are which of the following?
Eurodollars are also known as euros, and are the currency of the eurozone monetary union | ||
US dollars in bank accounts in the eurozone and in Japan and other foreign nations | ||
US dollars in bank accounts in the eurozone but not in Japan or other foreign nations outside of the eurozone | ||
US dollars in New York bank accounts which are going to be used to purchase euros |
Q2)
Which of the following is true?
Exchange rate changes can affect a firm's operating cash flows, but not the values of its assets and liabilities | ||
Exchange rate changes do not affect a firm's operating cash flows, but exchange rate changes can affect the values of its assets and liabilities | ||
According to efficient markets theory, the value of a firm is not impacted by changes in exchange rates even when that firm has large exposures to foreign currencies. | ||
Exchange rate changes can affect a firm's operating cash flows, and also the values of its assets and liabilities |
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