Suppose that Boeing is to receive payment in euros in 6 month and wants to engage in hedging the firm would _______ euros on the 6-month forward market in order to protect itself from a/an of the euro?

Related Mcqs:

1. Suppose that the purchasing power parity estimate of the dollar/euro exchange rate is $1.30 per euro, and the current spot rate is $1.3 8 per euro. Comparing these two exchange rates from a long-run viewpoint you would ?

   A. anticipate the dollar to depreciate against the euro
   B. anticipate the dollar to appreciate against the euro
   C. anticipate the dollar’s exchange rate against the euro to remain constant
   D. have no anticipation concerning future movements in the dollar/euro exchange rate

2. Boeing aircraft company was able to over its production costs of the first – jumbo jetll in the seventies because Boeing could market it to several foreign airlines in addition to domestic airlines. This illustrates ?

   A. How economies of scale make possible a larger variety of products in international trade
   B. A transfer of wealth from domestic consumer to domestic producer as the result of trade
   C. How a natural monopoly is forced to behave more competitively with international trade
   D. How a natural monopoly is forced to behave less competitively with international trade

3. Suppose that Russia steel firms engage in dumping in the German market in terms of overall economic welfare, German welfare would _______ as the result of the dumping?

   A. increase
   B. decrease
   C. not change
   D. None of These

4. Refer to Exhibit 4, Suppose that the consumer must choose between buying socks and belts Also suppose that the consumer’s income is €100 Suppose that the price of a pair of socks falls from €5 to €2 The income effect is represented by the movement from point ?

   A. X to point Y
   B. X to point Z
   C. Y to point X
   D. Z to point X

5. Refer to Exhibit 4, Suppose that the consumer must choose between buying socks and belts Also suppose that the consumer’s income is €100 Suppose that the price of a pair of socks falls from €5 to €2 The substitution effect is represented by the movement from point ?

   A. Z to point X
   B. X to point X
   C. X to point Z
   D. Y to point X

6. Suppose there is an increase in the both the supply and demand for personal computers Further, suppose the supply of personal computer increase more than demand for personal computers In the market for personal computers i the market for personal computers, we would expect ?

   A. the change in the equilibrium quantity to be ambiguous and the equilibrium price to fall.
   B. the equilibrium quantity to rise and the equilibrium price to rise
   C. the equilibrium quantity to rise and the change in the equilibrium price to be ambiguous
   D. the equilibrium quantity to rise and the equilibrium price to fall
   E. the equilibrium quantity to rise and the equilibrium price to remain constant

7. Suppose that at a price of Rs 30 per month there are 30000 subscribers to cable television in small Town. If small Town Cablevision raises its price Rs40 per month the number of subscribers will fall to 20000 Using the midpoint method for calculating the elasticity what is the price elasticity of demand for cable TV in Small Town ?

   A. 1.4
   B. 0.66
   C. 0.75
   D. 2.0

8. Suppose that at a price of Rs 30 per month there are 30000 subscribers to cable television in small Town. If small Town Cablevision raise its price to Rs 40 per month the number of subscribers will fall to 20000 At which of the following price does small Town Cablevision earn the greatest total revenue ?

   A. Rs 0 per month
   B. Rs 30 per month
   C. Rs 40 per month
   D. Either Rs 30 or Rs 40 per month because the price elasticity of demand is 1.0

9. Suppose a frost destroys much of the Florida orange crop. At the same time, suppose consumer tastes shift toward orange juice, What would we expect to happen to the equilibrium price and quantity in the market for orange juice ?

   A. price will decrease, quantity is ambiguous
   B. The impact on both price and quantity is ambiguous.
   C. Price will increase, quantity will increase
   D. price will increase, quantity will decrease
   E. price will increase, quantity is ambiguous.

10. The franc is said to be selling at a _______ if the spot dollar price is $0.48 and the nine-month forward rate is $0.42 ?

    A. forward discount
    B. forward premium
    C. forward spread
    D. None of these