Ch 9 Quiz - 1) a) b) c) d) 2) a) b) c) d) 3) a) b) c) d)...

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Quiz 9 1) The dollar is the most widely traded currency in the world. All of the following are true, except: a) An investment currency in many capital markets b) A reserve currency held by many central banks c) An invoice currency in many contracts d) All of the above 2) _____________ the rate at which traders buy foreign exchange a) Bid b) Offer c) Quote d) Spread 3) The biggest market for foreign exchange is: a) New York b) Tokyo c) Singapore d) London 4) ___________________ is the rate quoted for transactions that call for delivery after two business day. a) two-day rate b) forward rate c) premium rate d) future rate 5) _______________ is the buying and selling of foreign currencies at a profit due too price discrepancies. a) Arbitrage b) Speculation c) Capitalization d) Eurobonds Answers: 1) D 2) A 3) D 4) B 5) A 1.) The exchange of currency three or more days after the date on which the traders agree to the transaction is a) FX Swap b) Spot transaction c) Outright forward transaction d) Over-the-counter transaction
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2.) What is the top currency pair traded?
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Ch 9 Quiz - 1) a) b) c) d) 2) a) b) c) d) 3) a) b) c) d)...

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