Suppose an Australian importer buys manufacturing equipment from France worth 50 million Euros at an exchange rate of AUD/EUR of 0.9622. Suppose that the exchange rate depreciates a week later to AUD/EUR = 0.9582. Then the AUD value of the import bill has:
A) remained unchanged.
B) risen.
C) fallen.
D) Without more information we cannot determine.
Correct Answer:
Verified
Q26: Which of the following is NOT true?
A)
Q27: Sterilised intervention by the RBA in the
Q28: An exchange rate is defined as the
Q29: Suppose an Australian importer buys manufacturing equipment
Q30: RBA intervention in the foreign currency market
Q32: Australia's exchange rate regime is called a:
A)
Q33: In a direct FX quote:
A) the price
Q34: Which statement is FALSE?
A) All arbitrage involves
Q35: According to the 'purchasing power parity' (PPP),
Q36: When the USD is worth less forward
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