QUESTION 1

On August 4, 2011, USD/JPY was 78.845. Later, on February 3, 2017, the rate was 112.55 per $1. By how much did JPY change in value over the period?

		42.75%
		-42.75%
		29.95%
		-29.95%

1 points

QUESTION 2

The contract size for one euro futures is 125,000 euros. On February 3, 2017, the futures settlement price for December 2017 was $1.0944. Suppose you wish to hedge with this contract. You wish to protect your inventory of 26 million. The spot exchange rate is $1.07. Calculate your hedge ratio.

About 278

About 203

About 137

None of the above

QUESTION 8

The sale of IBM computers in France will be recorded as a:

		credit item on the current account.
		debit item on the current account.
		credit item on the capital account.
		debit item on the capital account.
		credit item on the official reserves account.