Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

FOREX > FOREX > Flashcards

FOREX Flashcards

1
Q

An increase in the value of other currencies tends to cause:
Select one:

  • U.S. goods to be cheaper than foreign goods
  • U.S. goods to be more expensive than foreign goods
  • Foreign goods to be more expensive to residents of foreign nations
  • Foreign goods to be cheaper to residents of the United States.
A
  • U.S. goods to be cheaper than foreign goods
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

If interest rates are expected to move higher in the Philippines than in the United States, the market expects that the Peso will:

Select one:

  • Appreciate against the dollar
  • Depreciate against the dollar
  • Offer a higher real rate of return than the dollar
  • Be selling at a forward discount
A
  • Appreciate against the dollar
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

If you have a commitment to pay a friend in Britain 1000 pounds in 30 days, you could remove the risk of loss due to the appreciation of the pound by:

  • Buying dollars in the forward market for delivery in 30 days
  • Selling dollars in the forward market for delivery in 30 days
  • Buying the pounds in the forward market for delivery in 30 days
  • Selling the pounds in the onward market for delivery in so days
A
  • Buying the pounds in the forward market for delivery in 30 days
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Which of the following statements is false with respect to the differences between being long or short in a forward contract?

  • Throughout the term of the contract, the settlement price is rarely changed
  • The long position gains if the price of the underlying asset appreciates dramatically
  • Irrespective of being long or short there is no exchange of money at the initiation of the forward contract
  • The short position is the one that is exposed to counterparty (or default) risk at the initiation of the forward contract
A
  • The long position gains if the price of the underlying asset appreciates dramatically
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

An appreciation in the value of the Us collar against the British pound would tend to
Select one

  • Discourage the British from buying American goods
  • Discourage Americans from buying British goods
  • Increase the number of dollars that could be bought with a pound
  • Discourage US tourists from traveling to Britain
A
  • Discourage the British from buying American goods
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

A US export company scheduled to receive 1 million pounds six months from today can hedge its foreign exchange risk by:

Select one

  • Buying today 1 million pounds in the forward market for delivery in six months
  • Buying 1 million pounds in the spot market for delivery in six months
  • Selling 1 million pounds in the spot market for delivery in six months
  • Selling today 1 million pounds in the Forward market for delivery in six months
A
  • Selling today 1 million pounds in the Forward market for delivery in six months
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Most foreign exchange trading occurs between a bank and
Select one

  • The National governments
  • Other banks
  • Corporations
  • Household investors
A
  • Other banks
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

A corporation dealing in foreign exchange may desire to obtain an exchange quote between the pound and franc. whose values are both expressed relative to the dollar _____ are used to determine such a relationship

Select one
- Spot exchange rates
- Forward exchange rates
- Cross exchange rates
- Option exchange rates

A
  • Cross exchange rates
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

If 1 USD is was quoted at 0 9521 AUD yesterday and today the USD is trading at 0 9498 AUD, the USD has
Select one:

  • Appreciated, and will purchase less Australian goods.
  • Depreciated, and will purchase less Australian goods.
  • Appreciated, and will purchase more Australian goods.
  • Depreciated, and will purchase more Australian goods. Incorrect
A
  • Depreciated, and will purchase less Australian goods.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

A decrease in the real exchange rate (quoted in terms of domestic currency per unit of foreign currency) is most likely to be associated with an increase in which of the following? Select one

  • Foreign price level
  • Domestic price level
  • Nominal exchange rate
  • None of the above
A
  • Domestic price level
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Under a system of floating exchange rates, the Swiss franc would depreciate in value if which of the following occurs?
Select one

  • Price inflation in France
  • An increase in US real income
  • A decrease in the Swiss money supply
  • Falling interest rates in Switzerland
A
  • Falling interest rates in Switzerland
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What currency can purchase more USD?

Quotes from dealer A

Ratio: Spot Rate:
USD/SGD 1.2277
USD/CNY 6.2194
USD/SEK 6.5275

SEK
SGD
CNY
All three currencies are just the same

A

SGD

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

A country’s currency will depreciate after

Select one

  • Its income is growing slowly relative to the rest of the world
  • its inflation rate is lower than that of its trading partners
  • The real interest rate is lower than real rates in other countries
  • The monetary policy of the count becomes more restrictive
A
  • The real interest rate is lower than real rates in other countries
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Assuming everything else is the same, when a currency depreciates one can predict that:

  • The price level will rise and real GDP will rise
  • The price level will fall and real GDP will fall
  • Real GDP will rise, but price change is not predictable
  • The price level will rise, but real GDP change is not predictable
A
  • The price level will rise and real GDP will rise
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

How many dollars will it take for a US citizen to purchase a Japanese product priced at 60,000 yen if the exchange rate is 1/89.95?

Select one

  • 667
  • 60000
  • 5397000
  • 8995
A

667

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

If the BSP wants to manage peso inflation how can he do this via the USD/PHP Swaps?

Select one:

  • Do a buy/sell transaction
  • Do a sell/buy transaction
  • Ease overnight rates
  • None of the above
A
  • Do a sell/buy transaction
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Over time, a depreciation in the value of a nation’s currency in the foreign exchange market will result

Select one:

  • Exports rising and imports falling
  • Imports rising and exports falling
  • Both imports and exports rising
  • Both imports and exports falling
A
  • Exports rising and imports falling
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Assume 1 unit of currency A is equal to 0.52 unit of currency B. 1 unit of Currency B is worth which of the following?
Select one

  • 0.48 of currency A
  • 0.52 of currency A
  • 1.92 of currency A
  • 1.52 of currency A
A

1.92 of currency A

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

The NZD/USD market bid-offer is 0.8368-0 8373 and the USD/SEK market bid-offer is 6 5241-6 5250. What is the SEK/NZD bid rate where you can sell SEK?
Select one

  • 0.183
  • 0.1283
  • 0.1831
  • 0.1282
A

0.183

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

If a currency decreases in value as a result of government decree rather than market forces, the process is known as

Select one:

  • Devaluation
  • Depreciation
  • Deflation
  • Degeneration
A

Devaluation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

The NZD/USD is trading at 0.8372 and the USD/SEK is trading at 6.5255. The NZD/SEK exchange rate is:

  • 5.6883
  • 0.1283
  • 7.7944
  • 5.4631
A

5.4631

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

The exchange rate affects.
Select one:

  • The cost of imported goods
  • The country/s inflation rate
  • Employment
  • All of the above
A

All of the above

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

The spot rate on the NZD/USD is 0.8388, and the 180-day forward rate is 0.8288. This difference means:

  • Interest rates must be lower in the US than in New Zealand
  • Interest rates must be higher in the US than in New Zealand
  • The NZD is expected to appreciate
  • The USD is expected to depreciate
A

Interest rates must be lower in the US than in New Zealand

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

A major difference between the spot market and the forward market is
Select one

  • The immediate delivery of currencies
  • The merchandise trade account
  • Currencies traded for future delivery
  • Hedging of international currency risks
A
  • The immediate delivery of currencies
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

The NZD/USD market bid-offer is 0.8368-0.8373 and the USD/SEK market bid-offer is 6.5241-6.5250. At what rate can you buy NZD/SEK?

5.4634
7.7929
5.4594
7.77965

A

5.4634

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

If the interest rate on Swiss franc assets increases, the
Select one:

  • Demand for US. dollars will increase
  • Demand for Swiss franc currency will decrease
  • Demand for the Swiss franc currency will increase
  • Demand for dollar assets will increase
A
  • Demand for the Swiss franc currency will increase
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

IF Canadian speculators believed the Swiss franc was going to appreciate against the US dollar they would
Select one

  • Purchase Canadian dollars
  • Purchase US dollars
  • Purchase Swiss francs
  • Sell Swiss francs
A
  • Purchase Swiss francs
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Suppose that the exchange rate between the dollar and the peso changed from 6 pesos per dollar to 8 pesos per dollar. This change means that the:

  • Peso appreciated Incorrect
  • Dollar depreciated
  • Peso Depreciated
  • Both A & B
A
  • Peso Depreciated
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Today’s spot rate for the Indonesian rupiah (IDR) is USD/IDR 9,690 and the New Zealand dollar (NZD) trades at NZD/USD 0.8400. The NZD/IDR cross rate is:

  • NZD/IDR 0.00087
  • NZD/IDR 11,535.71 Incorrect
  • NZD/IDR 8,139.6
  • NZD/IDR 8,700
A

NZD/IDR 8,139.6

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Which of the following counterparties is most likely to be considered a sell-side (or offer-side) foreign-exchange market participant?
Select one

  • A large corporation that borrows in foreign currencies
  • A multinational bank that trades foreign exchange with its diverse client base
  • A sovereign wealth fund that influences cross-border capital hows
  • Both A and B
A
  • A multinational bank that trades foreign exchange with its diverse client base
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

What can be said about the spot exchange rate of pounds for dollars if nominal interest rates are higher in the U.S. than in Great Britain?

  • It should exceed the forward rate of pounds for dollars
  • It should be LESS than the forward rate of dollars for pound
A
  • It should be LESS than the forward rate of dollars for pound
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

If there were an unexpected decline in the growth rate of the money supply in the U.S.

  • Real interest rates, output, and prices would fall, causing the dollar to depreciate.
  • Real Interest rates would rise. Causing an appreciation of the dollar.
  • Nothing would happen to exchange rates in the short run.
  • Real Interest rates, output and prices would rise, causing the dollar to appreciate.
A
  • Real Interest rates would rise. Causing an appreciation of the dollar
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

If the exchange rate between Country A and B changes from A1.00 = B6.8 to B1.00 = A0.135, which of the following has occurred?

  • Country A’s currency has appreciated
  • Country B’s currency has appreciated
  • Country A’s currency has depreciated Incorrect
  • Both
A
  • Country A’s currency has appreciated
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Four counterparties in the foreign exchange market are quoting you the following spot USD/JPY prices, which is the best quote for you as a buyer of JPY?

87.30 – 33 Incorrect
87.29 - 36

A
30
Q

You are importing TV sets worth ¥10,000,000 from a Japanese manufacturer, and this amount is payable after six months. You can hedge your exchange risk by doing one of the following:

  • Buying Japanese yen in the forward market
  • Selling Japanese yen in the forward market Incorrect
  • Borrowing Japanese Yen
  • Do Nothing
A

Buying Japanese yen in the forward market

30
Q

An exchange rate

  • Is most commonly quoted in exchanges
  • is the price of one currency in terms of another currency
  • Between two currencies ensures they are fully convertible
  • All of the above
A
  • is the price of one currency in terms of another currency
30
Q

Concerning the foreign exchange market one can best say that
Select one

  • There is a spot market for virtually every currency in the world
  • The market is highly centralized like the stock exchange
  • Most foreign exchange payments are made with bank notes
  • The values of the forward and spot rates are always in agreement
A
  • There is a spot market for virtually every currency in the world
31
Q

Suppose that a Swiss watch that costs 400 francs in Switzerland costs $200 in the United States. The exchange rate between the franc and the dollar

Select one

  • 2 francs per dollar
  • 1 franc per dollar
  • 52 per franc
  • S3 per franc
A

2 francs per dollar

32
Q

When short-term interest rates become lower in Tokyo than in New York interest arbitrage operations will most likely result in a (an)

Select one

  • Increase in the spot price of the yen
  • Increase in the forward price of the dollar
  • Sale of dollars in the forward market
  • Purchase of yen in the spot market
A

Sale of dollars in the forward market

33
Q

A BRL/MXN spot rate is listed by a dealer at 0 1378 The 6-month forward rate is 0 14193 The 6-month forward points are closest to

Select one
-41.3
41.3
413
299.77

A

41.3

34
Q

From the point of view of the US, when the dollar strengthens, foreign goods become US imports will
Select one

More expensive; decrease
Less expensive: decrease
More expensive, increase
Less expensive: increase

A

Less expensive: increase

35
Q

In the USD/PHP Swaps market. if the 3-month Peso Reference Rate is at 300% and the 3-month USD. Reference Rate is at o 30% what is the implied Interest Rate Differential of a 3-month USD/PHP Swaps?

Select one
0.033
-0.027
0.027
0.001

A

0.027

36
Q

Assume you are an American exporter and expect to receive 50 pounds sterling at the end of 60 days. You can remove the risk of loss due to a devaluation of the pound sterling by

Select one

  • Selling sterling in the forward market for 60-day delivery
  • Buying sterling now and selling it at the end of 60 days
  • Selling the dollar equivalent in the forward market for 60-day delivery
  • Keeping the sterling in Britain after it is delivered to you
A
  • Selling sterling in the forward market for 60-day delivery
37
Q

Suppose there occurs an increase in the Canadian demand for Japanese computers This results in

Select one

  • An increase in the demand for yen
  • A decrease in the demand for yen
  • An increase in the supply of yen to Canada
  • A decrease in the supply of yen to Canada
A

An increase in the demand for yen

38
Q

Countries that wish to stimulate exports want the value of their own currency to

Select one

  • Rise
  • Fall
  • Hold steady
  • Value of currency does not
A

Fall

38
Q

As the US dollar’s foreign exchange value falls, we should expect to see

Select one

  • More Americans traveling abroad
  • American import levels rising
  • More foreigners visiting the United States
  • Increased foreign investment by American firms
A

More foreigners visiting the United States

39
Q

Which currency is the strongest against the USD?

Quotes from dealer A

Ratio Spot Rate
USD/SGD 1.2277
USD/CNY 6.2194
USD/SEK 6.5275

SEK
SGD
CNY
All three currencies are just the same

A

SGD

40
Q

Suppose that the quote for British pounds (GBP) in NY is 0.6215 USD/GBP What is the quote for US Dollar (USD) in London (GBP/USD)?
Select one

0.6215
1.6215
1.609
0.3785

A

1.609

41
Q

If exchange rate falls, then the expected profit from holding the terms currency
Select one

Increases
Decreases
Does not change
Can either increase or decrease

A

Increases

41
Q

In order to minimize the foreign exchange exposure on a euro-denominated receivable due from a German company in 100 days, a British company would most likely initiate a
Select one:

  • Spot transaction
  • Forward transaction
  • Real exchange rate contract
  • Nominal exchange rate contract
A
  • Forward transaction
41
Q

In the early 1980s, the Federal Reserve pursued a tight monetary policy All else being equal the impact of that policy was to _____ the dollar to interest rates in the United States relative to those in Europe and causes ______ against European currencies

Select one

Decrease, depreciate
Decrease. appreciate
Increase depreciate
Increase, appreciate

A

Increase, appreciate

42
Q

Suppose researchers discover that Swiss beer causes cancer when given in large amounts to British mice This finding would likely result in a (an)

Select one

  • Increase in the demand for Swiss francs
  • Decrease in the demand for Swiss francs
  • Increase in the supply of Swiss francs
  • Decrease in the supply of Swiss francs
A

Decrease in the demand for Swiss francs

43
Q

A depreciation of the dollar refers to a (an)
Select one

  • Fall in the value of foreign currency
  • Increase in the value of foreign currency
  • Loss of foreign-exchange reserves for the U.S
  • Intervention in the international money market
A
  • Increase in the value of foreign currency
44
Q

If 1 AUD is was quoted at 1.0503 USD yesterday and today the AUD is trading at 1.0528 USD, the USD
Select one

  • Appreciated, and will purchase less Australian goods
  • Depreciated, and will purchase less Australian goods
  • Appreciated, and will purchase more Australian goods
  • Depreciated, and will purchase more Austration goods
A

Depreciated, and will purchase less Australian goods

44
Q

For a major country with extensive capital flows and Flexible exchange rates what is the effect of a decrease in interest rates?

  • A currency depreciation and increased net exports
  • A currency depreciation and reduced net exports
  • A currency appreciation and increased net exports.
  • A currency appreciation and reduced net exports
A

A currency depreciation and increased net exports

45
Q

An American wants to buy six cases of champagne Each case costs 390 SEK If the USD/SEK exchange rate is 6 45. what will be the total USD cost of the American?

Select one

USD 38.70
USD 60.46
USD 362.79
USD 2,515.50

A

USD 362.79

45
Q

Which of the following statements is false with respect to the differences between being long or short in a forward contract?
select one

  • Throughout the term of the contract, the settlement price is rarely changed
  • The long position gains if the price of the underlying asset appreciates dramatically
  • Irrespective or being long or short, there is no exchange of money at the initiation of the forward contract
  • The short position is the one that is exposed to counterparty for default risk at the initiation of the forward contract
A
  • The long position gains if the price of the underlying asset appreciates dramatically
45
Q

If a US investor has just received JPY 2.500.000 from the sale of some Japanese securities and wants to obtain dollars for the yen, if the banks exchange rate is 90.60 - 83. how much will be the proceeds in USD?
Select one

USD 27,615.15
USD 27,584.68
USD 27,590.77
USD 27,566 43

A

USD 27,584.68

46
Q

When Foreign currencies are rising against the U.S. Dollar, a U.S. firm should

  • Make immediate payments to foreign creditors
  • Delay making payments to foreign creditors
  • Hasten collection of debts from abroad
  • Do nothing. It doesn’t matter.
A
  • Make immediate payments to foreign creditors
46
Q

The exchange rate between Currency A and Currency B changes from B/A120 to B/A140. There has been no change in the inflation rate in either country. This means that.

Select one

  • Currency A has appreciated relative to currency B-
  • Currency A has depreciated relative to currency B
  • Currency B now pays more for Currency A
  • Country A has a higher standard of living than Country B
A
  • Currency A has depreciated relative to currency B
47
Q

Which method of trading currencies involves the conversion of one currency into another at one point in time with an agreement to reconvert it back to the original currency at some point in the future?

A. Forward transaction
B. Futures transaction
C. Spot transaction
D. Swap transaction

A

D. Swap transaction

47
Q

Another dealer is quoting CNY/SEK cross-rate at 1.0511. The arbitrage profit can be earned is closest to

Ratio Spot Rate
USD/SGD 1.2277
USD/CNY 6.2194
USD/SEK 6.5275

SEK 1,600 per million CNY
CNY 1,600 per million SEK
SEK 98,300 per million CNY
CNY 98,300 per million SEK

A

SEK 1,600 per million CNY

48
Q

With everything else the same, in the foreign exchange market.

  • The larger the value of US exports. the greater is the quantity of dollars demanded
  • The stronger the dollar, the smaller is the expected profit from buying dollars.
A
  • The larger the value of US exports. the greater is the quantity of dollars demanded
49
Q

A forward premium indicates:

a. The interest rate is higher in the terms currency than in the base currency.

A

a. The interest rate is higher in the terms currency than in the base currency.

50
Q

An investor from Country A has just sold B10,000,000 of Country B’s securities. If the exchange rate is B100/A, how many Country A units can be obtained with the proceeds of the sale?

a. 100000

A

a. 100000

51
Q

Suppose the exchange value of the British pound is $2 per pound while the exchange value of the Swiss franc is So 0.50 cents per franc The cross exchange rate between the pound and the franc is

1 franc per pound
2 francs per pound
3 francs per pound
4 francs per pound

A

4 francs per pound

51
Q

When the U.S. dollar is devalued, the first to be adversely affected is the

U.S. exports
U.S. employment
U.S. consumer welfare
None of the above

A

U.S. consumer welfare (daw)

51
Q

Grain shortages in countries that buy large amounts of grain from the United States would increase the demand for American grain and

a. Increase the demand for dollars

A

a. Increase the demand for dollars

52
Q

An executive from Switzerland checked into a hotel room in Spain and was told by the hotel manager that 1 EUR will buy 1.2432 CHF. From the executive’s perspective, an indirect exchange rate quote would be:

0.8044 EUR per CHF
0.8044 CHF per EUR
1.2432 EUR per CHF
1.2432 CHF per EUR

A

0.8044 EUR per CHF

52
Q

The currency used to buy imported goods is

a. The seller’s home currency

A

a. The seller’s home currency

53
Q

A country’s currency will appreciate when its

  • Imports rise in relation to its exports
  • Current account moves from surplus to deficit*
  • Exports rise in relation to its imports
  • Capital accounts is in surplus but not changing
A
  • Current account moves from surplus to deficit*
54
Q

When is a Chinese exporter better-off to hedge his requirements via USD/CNY Forwards?

  • If interest rate differential is perceived to be widening
  • If USD appreciates against CNY
A
55
Q

If a forward exchange rate quote is trading at a discount, which of the following statements is most accurate?
Select one:

  • The swap points will be positive
  • The swap points will be negative
  • The base currency is expected to appreciate versus the price currency
  • The base currency interest rate is lower than the terms currency interest rate
A
  • The swap points will be negative
55
Q

The exchange rate is kept the same in all parts of the market by:

Select one:

Forward cover
Hedging
Exchange speculation
Exchange arbitrage

A

Exchange arbitrage

56
Q

If prices in the U.S. rise less rapidly than in Canada, which of the following would be expected according to purchasing power parity?

  • The value of the Canadian dollar will decline, relative to the U.S. dollar
  • The value of the U.S. dollar will decline, relative to the Canadian dollar
  • Inflation will increase in Canada
  • The price of gold will decline
A
  • The value of the Canadian dollar will decline, relative to the U.S. dollar
57
Q

If a buyer will be using JPY to pay for a German Car worth EUR 92,000, which bank should he do the conversion?

Bank A
Bank B
Bank C
Bank D

A

Bank B

58
Q

The NZD/USD market bid-offer is 0.8368-0.8373 and the USD/SEK market bid-offer is 6.5241-6 5250. What is the SEK/NZD bid rate where you can sell SEK?

Select one:

0.183
0.1283
0.1831
0.1282

A

0.183

58
Q

Market bid-ask quote for USD/JPY is 88.60-88.65 and bid-ask quote for USD/PHP is 40.60-40.65. At what rate can you buy JPY against PHP?

JPY/PHP 0.4588
JPY/PHP 0.4585
JPY/PHP 0.4582
JPY/PHP 0.4580

A

JPY/PHP 0.4588

58
Q

If the exchange rate of Australian dollar/U.S: dollars is 1/1.0506, then one of the statements below is true:
Select one:

  • It takes $1.00 to buy each AUD
  • The AUD is worth more than one U.S. dollar
  • Each AUD is worth approximately 95 cents
  • 1.0506 AUD will purchase one USD
A

The AUD is worth more than one U.S. dollar

59
Q

If portable disk players made in China are imported into the United States the Chinese manufacturer is paid with
Select one:

- dollars
- Yuan, the Chinese currency
- Euros, or any other third currency
- international monetary credits

A
  • Yuan, the Chinese currency
59
Q

Concerning the foreign exchange market, one can best say that:

Select one:

  • There is a spot market for virtually every currency in the world
  • The market is highly centralized like the stock exchange
  • Most foreign exchange payments are made with bank notes
  • The values of the forward and spot rates are always in agreement
A

There is a spot market for virtually every currency in the world

59
Q

What is the best NZD/USD quote from the market if you want to buy USD?

Select one:

0.8368-0.8373
0.8367-0.8372
0.8365-0.8370
0.8367-0.8369

A

0.8368-0.8373

60
Q

In the Philippine Dealing System (PDS) market for foreign exchange, the __________ refers to the price that a bank is willing to pay for a unit of foreign currency.

A

Exchange rate?

61
Q
A

FOREX (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions