Question 40 2.5 pts Which of the following did NOT contribute to the development of multinational corporations? Proliferation of international banks O Freedom of trade Trade controls such as tariffs and embargoes Improvements in transportation O Increase in cross-border demand for goods and services + Previous + 1340030 auburn instructure.com/course/271797/res/2774653 Youtube - The Show instructions signments Questions Question Question Question biznes 2.5 pts Question 14 rorlock kback Questions Time Running Anemote Sep 11:5 NaN Minutes, NaN Sec How may a Government/Central Bank in afwed exchange rate regime react in a foreign exchange market when there is a balance of payments surplus? 24/7 Proctoring Supp des Calculator Live Chat Let the foreign exchange market determine what to do with it Buy the domestic currency zrences Phone sorations Sell the domestic currency No reaction as the exchange rate is ved and cannot change aluate Save the surplus for some time in the future when it will need it Resources Previous Next- owser Guard" pohonolock.com tv tad Quiz Show Instructions s 2.5 pts Question 13 . A 2 Jestions Which of the following is a deficiency in the Absolute Purchasing Power Parity Theory? The theory does not consider luxury goods. The theory assumes that the baskets of goods are the same in the local and foreign countries. ns The theory focuses only on a single product. The theory applies only to fixed exchange rates. The theory computes the absolute value of the exchange rate and ignores negative values. rces Next nous 2.5 pts Question 12 Time Attemp 2 Hou Which of the following statement regarding fixed and floating exchange rate systems is correct? 24/7 The Government establishes the exchange rate in a fixed rate system while a Currency Board establishes the exchange rate in a floating rate system The Government establishes the exchange rate in a fixed rate system while the Central Bank establishes the exchange rate in a floating rate system An Authority establishes the exchange rate in a fixed rate system while the currency market establishes the exchange rate in a floating rate system. The exchange rate in a fixed exchange rate system is always higher than the exchange rate in a floating rate system. An Authority establishes the exchange rate in a fixed rate system while the Currency Board establishes the exchange rate in a floating rate system. + urses/1271797/quizzes/2774653/take/questions/61349312 The Best IP Geolo Bandwagon Host Laping(104 1. Using the Big Mac Price Index, determine the foreign exchange rate between Country A and Country B using the following information: Country A Country B Price per Big Mac $105.50 $45.25 Transportation cost per Big Mac $2.50 $0.25 Import cost on ingredients per Big Mac $1.00 $0.30 Transaction cost per Big Mac $1.00 $0.20 A$2.39/B$1 O A$2.38/B$1 O A$2.50/B$1 O A$2.37/B$1 D Question 28 2.5 pts ens AUS MNE purchased US$100,000 worth of goods on credit from a Canadian supplier when the spot exchange rate was US$0.76/CA$1. The MNE repaid the supplier in Canadian dollars in 30 days at which time the spot rate was CA$1.40/US$1. What was the initial price in Canadian dollars for the goods? (rounded) O CA$126,579 O CA$100,000 O CA$131,579 O CA$140,000 O CA$76,000 Previous Next Question 33 2.5 pts MNEs engage in trading foreign currencies for the following reasons: I. Commercial trade II. Investment III. Hedging IV. Speculative O I, II, III, and IV O I, II and III only O Lill and IV only O I, II and IV only II, III, and IV only
