FIN 366 EDU Motivated Minds/fin366edu.com FIN 366 EDU Motivated Minds/fin366edu.com | Page 10

a. True or False
18. A foreign exchange rate are best depicted as
a. the cost of a unit of foreign currency.
b. the current interest rates of varying countries.
c. the cost of a unit of one currency in terms of another currency.
d. the expected change in prices of international goods.
19.
Which of the underneath is not a issue connected with
international trade not encountered by domestic traders?
a.
One party in the trade has to be concerned about foreign
exchange risk.
b.
No one legal authority has control over the transaction and
legal remedies.
c. Credit information on opposite parties is often incomplete.
d. There is one currency involved.
20.
A shortage in the trade equilibrium of payments puts downhill
pressure on the exchange rate.
a.
True or False
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FIN 366 Week 1 DQ 1