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  3. Multinational Business Finance Study Set 4
  4. Quiz 9: Foreign Exchange Rate Determination and Intervention

________ Is Defined as the Spread of a Crisis in One

Question 9
Multiple Choice

________ is defined as the spread of a crisis in one country to its neighboring countries and other countries with similar characteristics. A) Speculation B) Contagion C) Capital market liquidity D) Political science

Related questions
Q 10
Critics of the balance of payments approach to exchange rate determination point to the emphasis on ________ of currency and capital rather than ________ of money or financial assets. A) flows; stocks B) stocks; flows C) import; export D) export; import
Q 11
Which of the following versions of PPP is thought to be the most relevant to possibly explaining what drives exchange rate values? A) The Law of One Price B) Absolute Purchasing Power Parity C) Relative Purchasing Power Parity D) The International Fisher Effect
Q 12
It is safe to say that most determinants of the spot exchange rate are also affected by changes in the spot rate, i.e., they are linked AND mutually determined.
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