Fin 6605 MC Set A Model

S bop as a german a b b c c d d e credit on trade

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Unformatted text preview: German a. b. b. c. c. d. d. e. Credit on trade account. Credit on long-term capital account. Credit on current account. Debit on short-term capital account. Credit on short-term capital account. Credit 72. If the forward direct quote for a foreign currency is less than the spot rate, that foreign currency is selling at a: currency a. b. c. d. d. Forward premium Backward discount Backward premium Forward discount Forward 73. The government determines which kinds of transactions are to be conducted at which exchange rates in which of the following system? exchange Single exchange rate system Single b. Multiple exchange rate system Multiple c. Partial exchange rate system Partial d. Broad exchange rate system Broad a. 74. _____is the purchase of foreign currency on one market for immediate resale on another market to profit from a price discrepancy. market a. Speculation Speculation b. c. d. e. Arbitrage Arbitrage Forward trading Forward Day trading Day Money market Money 75. Which of the following involves investing in interest-bearing instruments denominated in foreign currencies in a effort to earn a profit due to interest-rate differentials? due a. Cross trading Cross b. Forward trading Forward c. Reverse trading Reverse d. Interest arbitrage Interest 76. Key economic indicators include all of the following except: following a. b. c. d. Inflation Inflation Public policy Public Surpluses Surpluses Deficits Deficits 77. A current account deficit for a nation means: 77 current a. Nation imports part of current consumption a. b. Current borrowing is used to finance excess spending spending c. Future repayment through future CA surpluses c. d. Nation will export part of future consumption or investment investment e. All of the above. All 78. The following statements are true except: except a. CA deficit can be caused by reductions in private or public savings or investment boom or b. Whether CA deficit is good or bad depends on the exact nature and cause of the deficit; not possible to generalize. possible c. In general, a CA deficit caused by increases in investment may be sustainable and growthinvestment stimulating. d. The higher future growth will provide ample funds for repaying borrowed funds, assuming optimal investment behavior. optimal e. No exception. No 79. Which of the following is not true concerning 79. not the effects of a depreciation of U.S. dollar depreciation against the Japanese yen? against a. b. b. c. c. d. d. e. e. f. g. Weaken competitive position of U.S. importers Weaken competitive position of Japanese exporters Enhance competitive position of U.S. exporters Enhance competitive position of Japanese importers Promotes competition in U.S. market Helps to keep U.S. inflation in check Both e and f Both Answers. Answers. 01. 02. 03. 04. 05. 06. 07. 08. 09. 10. 11. 12. 13. 14. 15. d d c a c e c c d d d b b c a 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. c d c c a d e d f d d a d a e 31. e 46. f 32. d 47. a 33. b 48. b 34. d 49. b 35. b 50. a 36. a 51. e 37. d 52. a 38. b 53. e 39. c 54. c 40. c 55. e 41. d 56. d 42. n/a 57. b 43. n/a 58. d 44. a 59. d 45. a 60. d 61. 62. 63. 64. 65. 66. 67. 68. 69. 70. 71. 72. 73. 74. 75. c c a d e a b a c c e d b b d 76. b 77. e 78. e 79. g 80. n/a...
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This note was uploaded on 12/17/2012 for the course FIN 3604 taught by Professor Zhang during the Spring '12 term at University of San Francisco.

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