FIN 403 Final Exam

This work of FIN 403 Final Exam shows the solutions to the following problems:

1.The current currency in Italy is called:

2.A Forward contract:

3.If the US Dollar appreciates compared to the Euro:

4.All else equal, if the Fed increases interest rates:

5.In general, when speculating on exchange rate movements, the speculator will borrow the currency that is expected to appreciate and invest in the country whose currency is expected to depreciate.

6. To force the value of the pound to appreciate against the dollar, the Federal Reserve should:

7. A strong dollar is normally expected to cause:

8. The value of the Canadian dollar, Japanese yen, and Australian dollar with respect to the U.S. dollar are part of a:

9. Graylon, Inc., based in Washington, exports products to a German firm and will receive payment of