51) Most transactions in the interbank foreign exchange trading are primarily conducted via telecommunication techniques and little is conducted face-to-face.
52) Global daily foreign exchange turnover (combined swaps, spot, and forward transactions) has declined from roughly $1,500 billion in 2001, to $1,200 in 2004, to $1,000 in 2007.
53) Given the following pair wise exchange rates, estimate the crossrate of pounds per euro. $0.8410/£ $1.2223/euro A) £1.000/euro B) £1.5062/euro C) £0.6639/euro D) euro 1.5062/£ Answer: C
54) Given the following quotations (where the dollar is the home currency), what is the annualized forward premium (discount) on the U.S. dollar? Spot rate: $1.305/euro 6 -month forward rate: $1.335/euro
55) The article in the text about an intern's first day on the job as a currency trader relates how what he/she had learned in business school had very little to do with how trading decisions were made on the floor of the exchange.
56) The Continuous Linked Settlement system (CLS) links with the Real-Time Gross Settlement (RTGS) systems and is expected to eventually result in same-day settlement rather than the current two-day settlement required for foreign exchange spot market transactions.
57) Currency trading increased tremendously between 2004 and 2007 with daily trading volume jumping from $1.9 trillion to $3.2 trillion. Which of the following do experts think was a major driving force behind the increased daily volume?