文档介绍：1 Copyright ? 2012 Pearson Education, Inc. Fundamentals of Multinational Finance, 4e (Moffett) Chapter 9 Foreign Exchange Rate Determination and Forecasting Multiple Choice and True/False Questions Exchange Rate Determination: The Theoretical Thread 1) The important thing to remember about foreign exchange rate determination is that parity conditions, asset approach, and balance of payments approaches are ________ theories rather than ________ theories. A) competing; complementary B) competing; contemporary C) complementary; contiguous D) complementary; competing Answer: D Diff: 1 Topic: Exchange Rate Determination: The Theoretical Thread Skill: Recognition 2) Which of the following did NOT contribute to the exchange rate collapse in emerging markets in the 1990s? A) infrastructure weaknesses B) speculation on the part of market participants C) the sharp reduction of cross-border foreign direct investment D) All of the above contributed to the emerging markets exchange rate collapse of the 1990s. Answer: D Diff: 1 Topic: Exchange Rate Determination: The Theoretical Thread Skill: Recognition 3) It is safe to say that most determinants of the spot exchange rate are also affected by changes in the spot rate. ., they are linked AND mutually determined. Answer: TRUE Diff: 1 Topic: Exchange Rate Determination: The Theoretical Thread Skill: Conceptual 4) The ________ approach states that the exchange rate is determined by the supply and demand for national currency stocks, as well as the expected future levels and rates of growth of ary stock A) balance of payments B) ary C) asset market D) law ofone price Answer: B Diff: 1 Topic: Exchange Rate Determination: The Theoretical Thread Skill: Recognition 2 Copyright ? 2012 Pearson Education, Inc. 5) The ________ approach argues that exchange rates are determined by the supply and demand for a wide variety of financial assets A) balance of payments B) ary C) asset market D) law ofone price Answer: C Diff: