BUSI 604 - Test 2 exam version 2 complete questions and answers

BUSI 604 - Test 2 exam version 2 complete questions and answers  Question 1 2 out of 2 points OTC participants trade on a physical trading floor. Selected Answer: Fals e  Question 2 2 out of 2 points (___________) is considered a sign of economic recovery and stabilization but makes the currency of a country more expensive compared to other currencies, having a direct inverse effect on exports and imports. Selected Answer: Revaluati on  Question 3 0 out of 2 points Purchasing Power Parity has an impact on exchange rates and indicates the current level of inflation of one currency against another. Selected Answer: Fals e  Question 4 2 out of 2 points Eurocurrency and Eurobanks do not necessarily mean the currencies or the banks are European. Selected Answer: Tru e  Question 5 2 out of 2 points Speculation generally means buying a commodity when its price is low and then reselling it after prices rise in order to make a profit. Selected Answer: Fals e  Question 6 0 out of 2 points A large percentage of all FX market transactions are spot transactions. Selected Answer: Fals e  Question 7 2 out of 2 points The end result of the global competition is higher (_______) and lower (_________) for consumers. Selected Answer: quality products; prices