2/4 Class Flashcards
1
Q
Ch 3 HW
A
due next monday
2
Q
current events
A
are not due for the next due weeks 9th and 16th, watch canvas
3
Q
Ch 3
A
….
4
Q
spot rate
A
rate at that point in time, that is fair for demand
5
Q
OTC market
A
over the counter market, electronic market
6
Q
why do we need foreign currency
A
pay for supplies
sell goods in foreign markets
invest (set up shop) abroad
7
Q
why banks
A
they are intermediary
keep clients happy
8
Q
who else
A
mutual funds
hedge funds
individuals
Governments
9
Q
forward
A
contract agreeing to buy currency at a future rate
10
Q
swaps
A
…
11
Q
why is the US$ standard for foreign exchange
A
the US has the biggest economy
12
Q
spread
A
when someone sells something for more tan what you are paying
(ask -bid)/ask
13
Q
long
A
buy low and hope to sell high
14
Q
short
A
…..
15
Q
eurocurrency
A
leading and borrowing outside of country currencies
