B target zone c pegged exchange rate d floating

b. target zone
c. pegged exchange rate
d. floating exchange rate
Which one of the following is the most accurate statement about the global foreign exchange
markets?
Select one:
a. They act as the primary engine for economic growth in countries with freely-floating
exchange rates.
b. They are the markets where money denominated in one currency is bought and sold with
money denominated in another currency
c. They are extremely volatile and therefore subject to many government regulations to
protect arbitragers.
d. They are the largest and most volatile financial markets but exist only in the developed
economies.
A currency ___________ contract between a(n) _____ and the hedger calls for a fixed date, at a
fixed exchange rate for a specified amount of one currency against another currency and
performance is required legally.
Select one:
_______ is a daily settlement feature of the Chicago Board of Trade's Currency Futures market
in which profits and losses are credited every day at the end of trading.
Select one:

c. A maintenance margin
d. open interest
Which of the following is the least important advantage when considering the use of currency
futures contracts?
Select one:
Which of the following is a good example of pre-shipment risk?
Select one:
a. customs agents delay in processing the shipment at destination
b. the captain of the transport ship declares a general average
c. the shipment is not picked up on time at the exporter’s warehouse
d. perils of the sea
The _______ for/of foreign currency in Japan is derived from the demand for ___________ by
Japanese consumers.
Select one: