The difference between bid (buying) rates and ask (selling) rates is called the ? A. profit B. arbitrageC. spread D. forward transaction

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 ? 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) ? A. increase in the demand for yen B. decrease in the demand for yen C. increase in the supply of yen D.…

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 fallsC. Switzerland’s…

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 creditB. foreign currency option C. cable…

A depreciation of the dollar will have its most pronounced impact on imports if the demand for imports is ? A. constant B. inelasticC. 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 _______…

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 ? A. GDP usually decreases before it increases after a currency depreciationB. the trade balance usually gets worse before it improves after a currency depreciation C. the trade balance usually gets better…