Stage 5 Testing 2:True-False Statements
In this part of the test,you will read ten statements about the information presented in the lecture.First read the statement carefully.Then check your notes to decide whether the statement is true or false.If it is true,write a T in the blank space before the statement; if it is false,write an F in the blank.
1._______When you make international investments,you have to take into consideration the expected rate of return and the exchange rate.
2._______You cannot trade the Brazilian real on the foreign exchange market because it is an inconvertible currency.
3._______China’s foreign exchange reserves consist of only the British pounds,the euros,and the US dollars.
4._______A straightforward rate is the price for immediate exchange of one money for another.
5._______When a 30-day forward rate for the Japanese yen is quoted at ¥100/US$,it means that no currency is exchanged today,but in 30 days it will take ¥100 to buy US$1.
6._______The quote,RMB6.3028/US$,is a direct quote in the United States.
7._______The Canadian dollar depreciates when its value changes from US$1.076/C$ to US$1.1005/C$.
8._______A government is likely to lower the international value of its national currency if it wants to boost exports and create jobs.
9._______The foreign exchange market operates twenty-four hours a day,seven days a week.
10._______The foreign exchange market is the largest financial market in the world with an average daily trading volume of US$ 6.6 billion.