Question : 45.The price of one currency stated in terms of another : 1259549

 

 

45.The price of one currency stated in terms of another currency is the:   

A. Current ratio.

 

B. Exchange rate.

 

C. Facilitating payment.

 

D. International clearing price.

 

 

 

 

46.If the exchange rate for a foreign currency (stated in dollars) has risen, a dollar will purchase:   

A. An increased amount of that foreign currency.

 

B. An unchanged amount of that foreign currency.

 

C. A smaller amount of that foreign currency.

 

D. An undetermined amount of that foreign currency.

 

 

 

 

47.Consider the following statement: “A strong dollar rose sharply against the British pound, but fell slightly against the Japanese yen.” This statement indicates that:   

A. The British pound is a stronger currency than the Japanese yen.

 

B. The exchange rate for the yen, stated in dollars, is rising.

 

C. The exchange rate for the pound, stated in dollars, is rising.

 

D. The exchange rate for the yen, stated in pounds, is falling.

 

 

 

 

 

48.Refer to the above data. The number of pounds equal to $50,000 on this date is:   

A. £31,250.

 

B. £80,000.

 

C. £32,500.

 

D. Depends upon whether the item is a receivable or a payable.

 

 

 

49.Refer to the above data. The number of dollars equivalent to £50,000 on this date is:   

A. $31,250.

 

B. $80,000.

 

C. $32,500.

 

D. Depends upon whether the item is a receivable or a payable.

 

 

 

 

50.Refer to the above data. The number of Japanese yen equivalent to $40,000 on this date is: (rounded to whole ¥)   

A. ¥3,056,000.

 

B. ¥5,235,602.

 

C. ¥5,245,745.

 

D. Depends upon whether the item is a receivable or a payable.

 

 

 

51.Refer to the above data. The number of dollars equivalent to ¥5,250,000 on this date is:   

A. $40,110.00.

 

B. $687,172.50.

 

C. $87,225.50.

 

D. Depends upon whether the item is a receivable or a payable.

 

 

 

52.Walblue imports a desk from a French manufacturer for sale in its chain of U.S. stores. The cost of a desk to Walblue is 3,700 euros (€). What is the dollar cost of one of these desks if the exchange rate is currently 1.117 euros per U.S. dollar? (round to nearest cent)   

A. $1,117.00.

 

B. $4,132.90.

 

C. $3,312.44.

 

D. $3,700.00.

 

 

 

53.At the current exchange rate of $1.40 per British pound, a one-day pass to Worldwide Theme Park of Florida sells for 45 pounds at travel agencies throughout Great Britain. If the exchange rate increases to $1.70 per pound, what will happen to the price of a one-day pass sold in Great Britain?   

A. The price will be unchanged.

 

B. The price will fall to 37 pounds.

 

C. The price will increase to 54 pounds.

 

D. The price will fall by 12 pounds.

 

 

 

54.Rochester, Inc. purchased cameras from a Japanese company at a price of 4 million yen. On the purchase date, the exchange rate was $0.0100 per Japanese yen, but when Rochester, Inc., paid the liability, the exchange rate was $0.0103 per yen. When this foreign account payable was paid, Rochester, Inc., recorded a:   

A. Debit to Inventory of $1,200.

 

B. Loss of $1,200.

 

C. Credit to Accounts Payable of $41,200.

 

D. Gain of $1,200.