You are a foreign exchange student studying in Switzerland. You are from Australia and currently have Australian dollars and some euros to use, so you decide to travel to Great Britain to sightsee on holiday break. In order to have pounds sterling to travel in Great Britain, you are a __________ in the foreign exchange market. Select one: a. seller of pounds and buyer of Australian dollars b. seller of pounds and buyer of Australian dollars and euros c. seller of pounds, Australian dollars, and euros d. buyer of pounds and seller of Australian dollars and euros

If you work for a company that __________, you do not want the home currency to __________. ?

Select one:

a.

?depends on sales in foreign markets; depreciate

b.

?faces a lot of foreign competition in the local market; appreciate

c.

makes most of its income from exports; depreciate

d.

?imports a lot of goods; appreciate

Graeham has moved abroad to pursue his career after college. Unfortunately, the country where he is now living is experiencing a period of very high inflation. Graeham can expect the currency of his newly adopted country to

a.

?decrease in value due to a decrease in demand as potential investors are no longer interested in investing in an inflationary economy.

b.

?increase in value due to a decrease in demand as potential investors are no longer interested in investing in an inflationary economy.

c.

?increase in value due to an increase in supply as investors who hold the country's currency rush to sell the currency as inflation fears grow.

d.

?be stable because inflation is a very stabilizing influence on an economy in general.