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Q. Which of the following would NOT be a cause for an increased American demand for the euros?

Q. Volusia, plc is a UK-based exporting firm that expects to receive payments denominated in both euros and Canadian dollars in one month. Based on today's spot rates, the pound value of the funds to be received is estimated at £500,000 for the euros and £300,000 for the Canadian dollars. Based on data for the last fifty months, Volusia estimates the standard deviation of monthly percentage changes to be 8 percent for the euro and 3 percent for the Canadian dollar. The correlation coefficient between the euro and the Canadian dollar is 0.30. What is the portfolio standard deviation?

Q. Which of the following would likely have the least direct influence on a country's current account?

Q. A eurocurrency is:

Q. Foghat Co. has 1,000,000 euros as receivables due in 30 days, and is certain that the euro will depreciate substantially over time. Assuming that the firm is correct, the ideal strategy is to:

Q. By definition, currency appreciation occurs when

Q. If a foreign country follows the "Purchase Homemade Products" philosophy, the least effective strategy would be for a UK firm to:

Q. An increase in the current account deficit will place _______ pressure on the home currency value, other things equal.

Q. Covered interest arbitrage involves both

Q. As opposed to transaction exposure, managing economic exposure involves developing a ________ solution.