19. Calculate the dollar price of a German automobile worth 40,000 euros, if the
ID: 1221913 • Letter: 1
Question
19. Calculate the dollar price of a German automobile worth 40,000 euros, if the dollar per euro exchange rate is 1.5.
a. $41,500
b. $26,700
c. $60,000
d. $50,000
e. $38,500
20. Which of the following is true of international reserve currencies?
a. They are used for international exchange of goods and services.
b. They are used to settle international debt.
c. They are used for international bookkeeping.
d. They are held for government investment abroad.
e. They are created for international stock market trading.
21.A composite currency whose value is the average of the value of the U.S. dollar, the Japanese yen, the euro, and the British pound is known as:
a. special drawing right.
b. social direct response.
c. single directive response.
d. scarce diligence resource.
e. scarce delivery resource.
22. Which of the following can be categorized as a composite currency?
a. Italian lira
b. European Currency Unit
c. Pound
d. Australian dollar
e. Danish Krone
23. The Depository Institutions Deregulation and Monetary Control Act passed by the Congress in 1980 led to:
a. the complete removal of thrift institutions.
b. increased competition among financial institutions.
c. the formation of large number of savings and loan associations.
d. privatization of all financial institutions in the U.S.
e. the complete removal of credit unions.
24. The Gramm-Leach-Bliley Act (GLBA), passed by the U.S. Congress in the year 1999, allows commercial banks to:
a. operate in all foreign countries.
b. open new branches in Cuba.
c. expand their business into other areas of finance, including insurance and selling securities.
d. raise reserve requirements for other financial institutions.
e. eliminate unit banking.
25. The main source of earning profits for banks is:
a. government securities.
b. savings accounts.
c. reserves.
d. loans.
e. checking account fees.
Explanation / Answer
Answer 19:
Option C.
Exchange rate = $1.5 / Euro. Price of German automobiles = 40,000 Euros.
Dollar price of the car = 1.5 * 40,000 Euros = 60,000 Euro.
Answer 20:
Option b.
Foreign Reserves are used to settle international debt of the country. If the government is not able to cover the debt then foreign exchange reserves are used to settle the claims.
Answer 21:
Option A. SDRs refer to international reserve asset created by IMF in 1969 to supplement the existing official reserves of member countries. Its value is based on on a basket of key international currencies reviewd by IMF every five years. The weights are assigned to each currency. Thease currencies are - US Dollar, Euro, Yen and Pound. Chinese Yuan has been recenty added.
Answer 22:
Option b.
European currency unit is regard as composite unit. This is because value of ECU is determined by the weighted average of the currencies of the all the countries who are a part of European Union, as the name suggests.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.