Business, 16.03.2020 23:56 Braxtonw875
For the three years from early 2002 to early 2005, the euro maintained a strong and steady rise in value against the U. S. dollar (USD). After a brief respite in 2005, the euro continued its climb against the USD into 2008. Which of the following were NOT a contributing factor in the assent of the euro and the decline in the dollar?
A) severe U. S. balance of payments deficits
B) a general weakening of the dollar after the attacks of September 11, 2001
C) large U. S. balance of payment surpluses
D) All of the above were contributing factors.
Answers: 1
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Andrea cujoli is a currency speculator who enjoys "betting" on changes in the foreign currency exchange market. currently the spot price for the japanese yen is ¥129.87/$ and the 6-month forward rate is ¥128.53/$. andrea would earn a higher rate of return by buying yen and a forward contract than if she had invested her money in 6-month us treasury securities at an annual rate of 2.50%. true/false?
Answers: 2
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