Topic 2

Question 1

The dollar-euro exchange rate is $1.25/€. How many euros will $1 get you?

A. €1.00
B. €1.25
C. €0.8
D. €0.5

Answer 1

C. €0.8

Question 2

Suppose you want to buy $10,000 worth of euros, how many euros do you receive?
In US$ - 1.3092
Per US$ - .7638

A. 13,092
B. 13,814
C. 7,638
D. 6,581

Answer 2

C. 7,638

Question 3

Suppose you need €10,000. How many $?Suppose you have $10,000. How many €?
In US$ - 1.3092
Per US$ - .7638

A. $7,638 : €7,638
B. $13,092 : €7,638
C. $7,638 : €13,092
D. $7,638 : € 13,092

Answer 3

B. $13,092 : €7,638

Question 4

A speculator in New York wants to take a $100,000 position in the pound. How many pounds will he receive?
S($/£) Bid Ask
1.5400 – 05

A. £64,935
B. £64,913
C. £154,000
D. £154,050

Answer 4

B. £64,913

Question 5

A speculator in London wants to take a £100,000 position in the dollar. How many dollars will he receive?
S($/£) Bid Ask
1.1421 – 27

A. $87,558
B. $110,421
C. $114,210
D. $114,270

Answer 5

C. $114,210

Question 6

You have $10,000,000 and need euros. The exchange rate is quoted as
USD/EUR: 1.2569 – 1.2572
You end up with?

A. EUR 7,956,082
B. EUR 1,256,900
C. EUR 7,954,184
D. EUR 12,569,000

Answer 6

C. EUR 7,954,184

Question 7

Suppose a bank customer with €1,000,000 wishes to trade out of euro and into Japanese yen. The dollar-euro exchange rate is quoted as $1.60 = €1.00 and the dollar-yen exchange rate is quoted at $1.00 = ¥120. How many yen will the customer get?

A. ¥5,208,333
B. ¥192,000,000
C. ¥75,000,000
D. ¥5,208.33

Answer 7

B. ¥192,000,000