QuizMaster, Author at AnsweringExams.Com

The franc is said to be selling at a _______ if the spot dollar price is $0.48 and the nine-month forward rate is $0.42 ?

September 11, 2021June 1, 2019 by QuizMaster

The franc is said to be selling at a _______ if the spot dollar price is $0.48 and the nine-month forward rate is $0.42 ?

A. forward discount
B. forward premium
C. forward spread
D. None of these

Riskless transactions to take advantage of profit opportunities due to a price differential or a yield differential in excess of transaction costs are called ?

September 11, 2021June 1, 2019 by QuizMaster

Riskless transactions to take advantage of profit opportunities due to a price differential or a yield differential in excess of transaction costs are called ?

A. differential actions
B. cash transaction
C. arbitrage
D. forward transactions

If the bank is selling francs for $0.45, then what is the implied franc price of the dollar ?

September 11, 2021June 1, 2019 by QuizMaster

If the bank is selling francs for $0.45, then what is the implied franc price of the dollar ?

A. 2.0
B. 1.999
C. 2.323
D. 2.222

An important feature of a _______ is that the holder has the right but not the obligation to buy or sell currency ?

September 11, 2021June 1, 2019 by QuizMaster

An important feature of a _______ is that the holder has the right but not the obligation to buy or sell currency ?

A. Swap
B. foreign exchange arbitrage
C. foreign exchange option
D. futures market contract

The exchange rate is kept the same across geographically separate markets by ?

September 11, 2021June 1, 2019 by QuizMaster

The exchange rate is kept the same across geographically separate markets by ?

A. hedging
B. speculation
C. government regulation
D. arbitrage

In a supply and demand diagram for Japanese yen, with the exchange rate in dollars per yen on the vertical axis, the demand schedule for yen is drawn sloping ?

September 11, 2021June 1, 2019 by QuizMaster

In a supply and demand diagram for Japanese yen, with the exchange rate in dollars per yen on the vertical axis, the demand schedule for yen is drawn slog ?

A. upward
B. vertical
C. downward
D. horizontal

The largest volume of foreign exchange trading takes place in ?

September 11, 2021June 1, 2019 by QuizMaster

The largest volume of foreign exchange trading takes place in ?

A. China
B. Germany
C. United Kingdom
D. USA

During the era of dollar appreciation from 1981 to 1985 a main reason why the dollar did not fall in value was ?

September 11, 2021June 1, 2019 by QuizMaster

During the era of dollar appreciation from 1981 to 1985 a main reason why the dollar did not fall in value was ?

A. flows of foreign investment into the United States
B. rising price inflation in the United States
C. a substantial decrease in U.S imports
D. a substantial increase in U.S exports

Under a system of floating exchange rates the pound would depreciate in value if there occurs ?

September 11, 2021June 1, 2019 by QuizMaster

Under a system of floating exchange rates the pound would depreciate in value if there occurs ?

A. Price inflation in the United States
B. an increase in U.S real income
C. a decrease in the British money supply
D. falling interest rates in Britain

Suppose that a Swiss television set that costs 400 francs in Switzerland cost $200 in the United States. The exchange rate between the franc and the dollar is ?

September 11, 2021June 1, 2019 by QuizMaster

Suppose that a Swiss television set that costs 400 francs in Switzerland cost $200 in the United States. The exchange rate between the franc and the dollar is ?

A. 2 francs per dollar
B. 1 franc per dollar
C. $2 per franc
D. $3 per franc