At the time of Operation Torch, the USSR was set to win a great victory at

If a U.S. firm has much more revenue than expenses denominated in euros, the firm will likely ____ if the euro ____.

The Bretton Woods Agreement created a system under which exchange rates are determined by market forces without intervention by various governments.

Mercury Co. has a subsidiary based in Italy and is exposed to translation exposure. Mercury forecasts that its earnings next year will be €10 million. Mercury decides to hedge the expected earnings by selling €10 million forward. During the next year, the euro appreciated. Mercury’s consolidated earnings were ____ affected by the euro’s movement, and Mercury’s hedge position was ____ affected by the euro’s movement.

In a forward hedge, if the forward rate is an accurate predictor of the future spot rate, the expected real cost of hedging payables assuming away transaction costs will be:

The North Korean army ____________________ the South Korean Army.

Bank A quotes a bid rate of $.300 and an ask rate of $.305 for the Malaysian ringgit (MYR). Bank B quotes a bid rate of $.306 and an ask rate of $.310 for the ringgit. What will be the profit for an investor who has $500,000 available to conduct locational arbitrage?

A weak dollar is normally expected to cause:

Assume a Swiss firm invoices exports to the U.S. in U.S. dollars.  Assume that the forward rate and spot rate of the Swiss franc are equal.  If the Swiss firm expects the U.S. dollar to __________ against the franc, it would likely wish to hedge.  It could hedge by __________ dollars forward.

In the Battle of Britain