FIN 565 Week 8 Final Exam - Correct Answers

WEEK 8: FINAL EXAM Quiz Instructions Here is some information about your Final Exam. Your main course-related activity this week is taking the Final Exam. You have 3 hours and 30 minutes to complete the exam. Please review the Syllabus for information regarding the opening and closing of the Final Exam. The Final Exam is open book, open notes, but in the Final Exam environment, the Windows clipboard and printing functions are disabled. You will not be able to copy exam questions or answers to or from other applications. You will find 10 multiple choice, four short answers, and eight essay questions on the exam. The multiple choice questions are worth 5 points each, totaling 50 points. The short answer questions are worth 12 and 14 points, and the essay questions are worth 25 points each, totaling 250 points. The Final Exam has a total of 300 points, and this represents 30% of the 1,000 maximum course points that can be earned in this course. All questions are randomly selected from an exam pool. The Final Exam is comprehensive and covers all weeks’ material and all of the COs. Each question is identified with its respective CO. Because efficient time management is critical to performing well on this exam, it is suggested that you complete the multiple choice questions first. Skip the questions about which you are unsure. The same caveat applies to the short answer questions and essays. Then, return to the multiple choice questions, short answer questions, and essays you have yet to answer. Do not spend too much time on any one question or problem. The best bet for thorough exam preparation is to achieve mastery of the course material (readings, lessons, lesson supplements, and question and problem sets) prior to taking the exam. Accordingly, this week (Week 8) is the time to resolve any lingering questions you may have by using the Q & A Forum in the Introduction and Resources module to ask appropriate questions of your instructor. Only your instructor can grant you additional time to complete the exam. Be sure to contact your instructor if you are kicked out of the exam before the 3-hour-and-30-minute deadline. When the time limit is reached, you will be exited from the exam. By submitting this work, I am attesting that it abides by the Student Honor Code (https://devryu.instructure.com/courses/899/pages/student-honor-code) . (TCO A) A high home inflation rate relative to other countries would the home country's current 5 pts Question 1 account balance, other things being equal. A high growth in the home income level relative to other countries would the home country's current account balance, other things being equal. increase; increase increase; decrease decrease; decrease decrease; increase Question 2 5 pts (TCO A) The U.S. dollar is not ever used as a medium of exchange in any Latin American countries. industrialized countries outside the United States. Eastern European countries where foreign exchange restrictions exist. None of the above Question 3 5 pts (TCO B) Assume that Swiss investors are benefiting from CIA due to a high U.S. interest rate. Which force results from the act of this CIA? Upward pressure on the Swiss franc's spot rate Upward pressure on the U.S. interest rate Downward pressure on the Swiss interest rate Upward pressure on the Swiss franc's forward rate Question 4 5 pts (TCO C) A strong dollar is normally expected to cause high unemployment a