1. what is meant by the foreign exchange market? where is it located?
2. what is meant by the forward market? how does it differ from the spot market?
3. the supply and demand for foreign exchange are considered to be derived schedules. explain.
4. explain why exchange rate quotations stated in different financial centers tend to be consistent with one another.
5. who are the participants in the forward exchange market? what advantages does this market afford these participants? what explains the relationship between the spot rate and the forward rate? what is the strategy of speculating in the forward market? in what other ways can one speculate on exchange rate changes?

Electronics assembly inc. is a contract manufacturer that assembles consumer electronics for a number of companies. currently, the operations manager is assessing the capacity requirements as input into a bid for a job to assemble cell phones for a major global company. the company would assemble three models of cell phones in the same assembly cell. setup time between the phones is negligible. electronics assembly inc. operates two 8-hour shifts for 275 days per year. cell phone demand forecast (phones/year) processing time (minutes/phone) mars 47,000 19.8 saturn 35,000 20.7 neptune 7,500 16.2 a. calculate total capacity required by line. b. determine the total operating time available. c. calculate the total number of assembly cells. (round up your answer to the next whole number.)

Match each of the terms below with an example that fits the term. a. fungibility the production of gasoline b. inelasticity the switch from coffee to tea c. non-excludability the provision of national defense d. substitution the demand for cigarettes

When selecting a savings account, you should look at the following factors except annual percentage yield (apy) fees minimum balance interest thresholds taxes paid on the interest variable interest rates