The difference between bid (buying) rates and ask (selling) rates is called the ?
A. profit
B. arbitrage
C. spread
D. forward transaction
Foreign Exchange
The least common type of transaction in the foreign exchange is a ?
The least common type of transaction in the foreign exchange is a ?
A. forward transaction
B. spot transaction
C. swap transaction
D. None of the above
The reduction or covering of foreign exchange risk is called ?
The reduction or covering of foreign exchange risk is called ?
A. hedging
B. speculation
C. intervention
D. arbitrage
Suppose there occurs an increase in the Canadian demand for Japanese computers This results in a (an) ?
Suppose there occurs an increase in the Canadian demand for Japanese computers This results in a (an) ?
A. increase in the demand for yen
B. decrease in the demand for yen
C. increase in the supply of yen
D. decrease in the Supply of yen
Given the foreign currency market for the Swiss franc, the supply of franc slopes upward, because as the dollar price of the franc rises ?
Given the foreign currency market for the Swiss franc, the supply of franc slopes upward, because as the dollar price of the franc rises ?
A. America’s demand for Swiss merchandise rises
B. America’s demand for Swiss merchandise falls
C. Switzerland’s demand for American merchandise rises
D. Switzerland’s demand for American merchandise falls
Which financial instrument provides a buyer the right to purchase or sell a fixed amount of currency at a prearranged price, within a few days to a couple of years ?
Which financial instrument provides a buyer the right to purchase or sell a fixed amount of currency at a prearranged price, within a few days to a couple of years ?
A. letter a credit
B. foreign currency option
C. cable transfer
D. bill of exchange
A depreciation of the dollar will have its most pronounced impact on imports if the demand for imports is ?
A depreciation of the dollar will have its most pronounced impact on imports if the demand for imports is ?
A. constant
B. inelastic
C. elastic
D. Unitary elastic
In the early eighties, the Federal Reserve pursed a tight monetary policy. All else being equal. the impact of that policy was to interest rates in the United States relative to those in Europe and cause the dollar to _______ against European currencies?
In the early eighties, the Federal Reserve pursed a tight monetary policy. All else being equal. the impact of that policy was to interest rates in the United States relative to those in Europe and cause the dollar to _______ against European currencies?
A. decrease; depreciate
B. decrease; appreciate
C. increase; depreciate
D. increase; appreciate
The supply of foreign currency tends to be ?
The supply of foreign currency tends to be ?
A. upward slog
B. downward slog
C. vertical
D. any of the above
The J-curve effect refers to the observation that ?
The J-curve effect refers to the observation that ?
A. GDP usually decreases before it increases after a currency depreciation
B. the trade balance usually gets worse before it improves after a currency depreciation
C. the trade balance usually gets better before it gets worse after a currency appreciation
D. GDP usually decreases before it increases after a currency appreciation