MAN 3600 exam 3 Questions and Answers Latest Update 2025-2026
which of the following is characteristic of the fixed exchange rate system?
a. allows for monetary policy flexibility
b. value of currency is set relative to the value of another
c. rates based on supply and demand forces
d. utilized by most advanced economies - Answersb. value of currency is set relative to the value of
another
which of the following statements is most likely to be true regarding a currency's price if the supply of
the currency increases?
a. the price of currency increases
b. the price of currency goes down
c. the price of the currency remains constant
d. the price of the currency fluctuates randomly - Answersb. the price of currency goes down
you are given an exchange rate of $1.40/GBP. which of the following is true?
a. us terms and direct quotation for dollar
b. european terms and direct quotation for dollar
c. european terms and direct quotation for GBP
d. us terms and direct quotation for GBP
e. cross rate and direct quotation for dollar - Answersa. us terms and direct quotation for dollar
which of the following statements is true about currencies?
a. the british pound is an example of a nonconvertible currency
b. currencies that are used for international transactions are called non convertible
c. hard currencies are highly unstable currencies
d. convertible currencies can be readily exchanged for other currencies. - Answersd. convertible
currencies can be readily exchanged for other currencies.
If last year one dollar equaled one euro, and then the exchange rate shifted so that today one dollar
equals two euros, which of the following would most likely NOT occur?
, a. european firms would lower their prices on goods made with us parts
b. fewer europeans would travel to the us or study at us universities
c. european consumers would purchase fewer us products and services
d. european firms would pay more for raw material imported from the united states - Answersa.
european firms would lower their prices on goods made with us parts
assume that the price of big mac in japan in yen750 while that in the united states is $5.50. if the yen
dollar exchange rate is 125yen/dollar, what is the valuation of japanese yen?
a. undervalued by 135.4%
b. overvalued by 135.4%
c. overvalued by 13,536.4%
d. overvalued by 9.1%
e. undervalued by 9.1% - Answersd. overvalued by 9.1%
If the Euro-Dollar exchange rate moves to $1.25/Euro from $1.10/Euro a year ago, what is the
percentage change of Dollar?
a. value increase by 12%
b. value decrease by 12%
c. value decrease by 13.6%
d. value increase by .136%
e. value increase by 13.6% - Answersb. value decrease by 12%
which of the following documents is the contract (receipt) between the shipping company and the
exporter?
a. pro forma invoice
b. bill of lading
c. export declaration
d. commercial invoice - Answersb. bill of lading
The level of control a firm is seeking when deciding the mode of foreign market entry is ___________.
a. environmental factor
which of the following is characteristic of the fixed exchange rate system?
a. allows for monetary policy flexibility
b. value of currency is set relative to the value of another
c. rates based on supply and demand forces
d. utilized by most advanced economies - Answersb. value of currency is set relative to the value of
another
which of the following statements is most likely to be true regarding a currency's price if the supply of
the currency increases?
a. the price of currency increases
b. the price of currency goes down
c. the price of the currency remains constant
d. the price of the currency fluctuates randomly - Answersb. the price of currency goes down
you are given an exchange rate of $1.40/GBP. which of the following is true?
a. us terms and direct quotation for dollar
b. european terms and direct quotation for dollar
c. european terms and direct quotation for GBP
d. us terms and direct quotation for GBP
e. cross rate and direct quotation for dollar - Answersa. us terms and direct quotation for dollar
which of the following statements is true about currencies?
a. the british pound is an example of a nonconvertible currency
b. currencies that are used for international transactions are called non convertible
c. hard currencies are highly unstable currencies
d. convertible currencies can be readily exchanged for other currencies. - Answersd. convertible
currencies can be readily exchanged for other currencies.
If last year one dollar equaled one euro, and then the exchange rate shifted so that today one dollar
equals two euros, which of the following would most likely NOT occur?
, a. european firms would lower their prices on goods made with us parts
b. fewer europeans would travel to the us or study at us universities
c. european consumers would purchase fewer us products and services
d. european firms would pay more for raw material imported from the united states - Answersa.
european firms would lower their prices on goods made with us parts
assume that the price of big mac in japan in yen750 while that in the united states is $5.50. if the yen
dollar exchange rate is 125yen/dollar, what is the valuation of japanese yen?
a. undervalued by 135.4%
b. overvalued by 135.4%
c. overvalued by 13,536.4%
d. overvalued by 9.1%
e. undervalued by 9.1% - Answersd. overvalued by 9.1%
If the Euro-Dollar exchange rate moves to $1.25/Euro from $1.10/Euro a year ago, what is the
percentage change of Dollar?
a. value increase by 12%
b. value decrease by 12%
c. value decrease by 13.6%
d. value increase by .136%
e. value increase by 13.6% - Answersb. value decrease by 12%
which of the following documents is the contract (receipt) between the shipping company and the
exporter?
a. pro forma invoice
b. bill of lading
c. export declaration
d. commercial invoice - Answersb. bill of lading
The level of control a firm is seeking when deciding the mode of foreign market entry is ___________.
a. environmental factor
