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Question
Assume that the dollar value of a Swiss franc is 0.8600 (dollar per franc), and that U.S. importers start to like Swiss watches more than they did in the past. The Swiss franc would:
a. appreciate, as the demand curve of Swiss franc shifts to the right.
b. depreciate, as the demand curve of Swiss franc shifts to the right.
c. depreciate, as the demand curve of Swiss franc shifts to the left.
d. appreciate, as the supply curve of Swiss franc shifts to the right.
Answer
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Related questions
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In foreign exchange forecasting, what is a good forecast?
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Information exposure is a type of foreign exchange risk.
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Q:
A U.S. firm has a 1 million payment due to a Dutch firm in 90 days. The current spot rate is $1.00 per euro, and the 90-day forward rate is $1.11. Ben forecasts that the spot rate in 90 days will be $0.99. Jerry forecasts that the spot rate will be $1.12 in 90 days. The actual spot rate in 90 days turns out to be $1.10. Whose advice, between Ben and Jerry, will save the companys money?
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Q:
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