If the Exchange Rate Changes from 148 Kazakhstan Tenge Per

question 20

Multiple Choice

If the exchange rate changes from 148 Kazakhstan tenge per dollar to 155 Kazakhstan tenge per dollar,the dollar has

• A)appreciated.Other things the same,it now takes fewer dollars to buy Kazakhstani goods.
• B)appreciated.Other things the same,it now takes more dollars to buy Kazakhstani goods.
• C)depreciated.Other things the same,it now takes fewer dollars to buy Kazakhstani goods.
• D)depreciated.Other things the same,it now takes more dollars to buy Kazakhstani goods.

Comprehend the impact of exchange rates on profits and how businesses can hedge against this risk.

Recognize the benefits swaps provide in managing financial risks and restructuring balance sheets.

Calculate the financial outcome of engaging in futures contracts based on index movements.

Understand the principles of arbitrage in the context of futures pricing and interest rate parity.

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Definitions:

Administrative Expenses

Costs associated with the general administration of a business, such as salaries of senior executives and costs of general services.

Franchisee Payment

The financial remuneration a franchisee is required to pay to a franchisor, which may include initial fees, ongoing royalties, and advertising fees.

Business Organization

A legal entity formed to conduct business, which can vary in types such as sole proprietorships, partnerships, corporations, and limited liability companies.

Additional Capital

Funds injected into a business by its owners or investors over and above the initial investment amount, usually to support growth or cover deficits.