Suppose the government releases information that causes people to expect the purchasing power of the local currency in the future will be less than they previously had expected. What will happen to the FX rate today? Select one: a.The currency will weaken. b.There will be no immediate change. c.The currency will strengthen. d.It is hard to forecast. Which of the following statements is/are true with regard to the movements in cross exchange rates? Choose all that apply.
Suppose the government releases information that causes people to expect the
Select one:
a.The currency will weaken.
b.There will be no immediate change.
c.The currency will strengthen.
d.It is hard to
Which of the following statements is/are true with regard to the movements in cross exchange rates? Choose all that apply.
Select one or more:
a.A change in the equilibrium cross exchange rate over time is due to the same types of forces that affect the demand and supply conditions between two currencies.
b .If currencies A and B move in the same direction by the same degree against the dollar, currency A will also move in the same direction by the same degree against currency B.
c.When currency A appreciates against the dollar by a greater degree than currency B, then currency A depreciates against currency B.
d.If currency A appreciates against the dollar, while currency B is unchanged against the dollar, currency A appreciates against currency B by the same degree as it appreciates against the dollar
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