ACC 206 Quiz 6 Under a system of floating exchange rates, the Swiss franc would depreciate in value if which of the following occurs? Concerning the foreign exchange market, one can best say that: When the dollar gets stronger An appreciation in the value of the U.S. dollar against the British pound would tend to: In the interbank market for foreign exchange, the ____ refers to the difference between the offer rate and the bid rate. Over time, a depreciation in the value of a nation’s currency in the foreign exchange market will result in: Which financial instrument provides a buyer the right to purchase or sell a fixed amount of currency at a prearranged price, within a few days to a couple of years? A primary reason that explains the appreciation in the value of the U.S. dollar in the 1980s is: High real interest rates in the United States tend to: For purchasing-power parity to exist: Concerning exchange rate forecasting, ____ relies on econometric models which are based on macroeconomic variables likely to affect currency values. In the presence of purchasing-power parity, if one dollar exchanges for 2 British pounds and if a VCR costs $400 in the United States, then in Great Britain the VCR should cost: If the exchange rate between Swiss francs and British pounds is 5 francs per pound, then the number of pounds that can be obtained for 200 francs equals: Low real interest rates in the United States tend to: Concerning exchange rate forecasting, ____ is a common sense approach based on a wide array of political and economic data.