Exam 15: Foreign Exchange: The Structure and Operation of the Fx Market

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If interest rate parity holds,the currency of the country with the relatively ___ interest rates will trade at a forward _ to the country with the relatively _____ interest rate.

Free

(Multiple Choice)

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Question 1

Correct Answer:

Verified

If the value of a currency is determined by market forces,this is regarded as a:

Free

(Multiple Choice)

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Question 2

Correct Answer:

Verified

The _______ is the price at which Australian dollars can be converted into another currency.

Free

(Multiple Choice)

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Question 3

Correct Answer:

Verified

In general,the spread for retail transactions is:

(Multiple Choice)

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Question 4

Foreign exchange dealers quote _________ at which they are prepared to deal in foreign currency.

(Multiple Choice)

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Question 5

The convention in the FX markets is the first-named currency in a FX quote is:

(Multiple Choice)

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Question 6

For a FX quote of AUD/GBP0.6250-53 has a spread of:

(Multiple Choice)

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Question 7

A rule for working out a bid-ask cross rate for direct and indirect FX quotations is to multiply the two bid rates and multiply the two ask rates.

(True/False)

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Question 8

Distinguish between forward transactions and tom value transactions.

(Essay)

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Question 9

A large international organisation representing the central banks of the major developed countries is called:

(Multiple Choice)

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Question 10

Discuss the current exchange rate regimes of the major currencies.

(Essay)

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Question 11

An Australian export company wishes to sell its euro receipts,EUR 500 000,through an FX dealer and receives the following quote: 'Aussie mark spot is one-twenty-two fifty-five to sixty five'.What is the value of the export receipt?

(Multiple Choice)

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Question 12

A company treasurer has received the following foreign exchange quote from an FX dealer: AUD/USD 0.5655-60.For the financial report to the board of directors,the treasurer is required to ensure the USD is the unit of the quotation.Which exchange rate quotation will the treasurer include in the report?

(Multiple Choice)

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Question 13

Which of the following statements is correct?

(Multiple Choice)

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Question 14

Calculate the current exchange rate EUR/JPY,given these two quotes: USD/EUR 0.9780-90 USD/JPY 119.20-30

(Multiple Choice)

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Question 15

When a currency is quoted against the USD and the USD is the base currency,this is direct quoting.

(True/False)

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Question 16

The foreign exchange participant who quotes prices at which they are prepared to buy and sell foreign currencies is a:

(Multiple Choice)

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Question 17

The _______ quote is the number of units of foreign currency an Australian FX dealer is willing to take,in order to buy the unit of the quotation,that of AUD 1.

(Multiple Choice)

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Question 18

A/An _______ position is when an FX dealer enters into a forward contract to sell FX that is not held at that time.

(Multiple Choice)

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Question 19

The FX party that conducts buy and sell transactions in tow or more markets simultaneously to take advantage of price differentials is called a/an:

(Multiple Choice)

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Question 20

Showing 1 - 20 of 108

If interest rate parity holds,the currency of the country with the relatively ___ interest rates will trade at a forward _ to the country with the relatively _____ interest rate.

If the value of a currency is determined by market forces,this is regarded as a:

The _______ is the price at which Australian dollars can be converted into another currency.

In general,the spread for retail transactions is:

Foreign exchange dealers quote _________ at which they are prepared to deal in foreign currency.

The convention in the FX markets is the first-named currency in a FX quote is:

For a FX quote of AUD/GBP0.6250-53 has a spread of:

A rule for working out a bid-ask cross rate for direct and indirect FX quotations is to multiply the two bid rates and multiply the two ask rates.

Distinguish between forward transactions and tom value transactions.

A large international organisation representing the central banks of the major developed countries is called:

Discuss the current exchange rate regimes of the major currencies.

An Australian export company wishes to sell its euro receipts,EUR 500 000,through an FX dealer and receives the following quote: 'Aussie mark spot is one-twenty-two fifty-five to sixty five'.What is the value of the export receipt?

Which of the following statements is correct?

Calculate the current exchange rate EUR/JPY,given these two quotes: USD/EUR 0.9780-90 USD/JPY 119.20-30

When a currency is quoted against the USD and the USD is the base currency,this is direct quoting.

The foreign exchange participant who quotes prices at which they are prepared to buy and sell foreign currencies is a:

The _______ quote is the number of units of foreign currency an Australian FX dealer is willing to take,in order to buy the unit of the quotation,that of AUD 1.

A/An _______ position is when an FX dealer enters into a forward contract to sell FX that is not held at that time.

The FX party that conducts buy and sell transactions in tow or more markets simultaneously to take advantage of price differentials is called a/an:

A Modern Financial System: An Overview

Commercial Banks

Non-Bank Financial Institutions

The Share Market and the Corporation

Corporations Issuing Equity in the Share Market

Investors in the Share Market

Forecasting Share Price Movements

Mathematics of Finance: An Introduction to Basic Concepts and Calculations

Short-Term Debt

Medium-To-Long-Term Debt

International Debt Markets

Government Debt, monetary Policy and the Payments System

An Introduction to Interest Rate Determination and Forecasting

Interest Rate Risk

Foreign Exchange: Factors That Influence the Exchange Rate

Foreign Exchange: Risk Identification and Management

An Introduction to Risk Management and Derivatives

Future Contracts and Forward Rate Agreements

Options

Interest Rate Swaps, Cross-Currency Swaps and Credit Default

Filters

Exam 15: Foreign Exchange: The Structure and Operation of the Fx Market

If interest rate parity holds,the currency of the country with the relatively _______ interest rates will trade at a forward _______ to the country with the relatively _______ interest rate.

If the value of a currency is determined by market forces,this is regarded as a:

The _______ is the price at which Australian dollars can be converted into another currency.

In general,the spread for retail transactions is:

Foreign exchange dealers quote _________ at which they are prepared to deal in foreign currency.

The convention in the FX markets is the first-named currency in a FX quote is:

For a FX quote of AUD/GBP0.6250-53 has a spread of:

A rule for working out a bid-ask cross rate for direct and indirect FX quotations is to multiply the two bid rates and multiply the two ask rates.

Distinguish between forward transactions and tom value transactions.

A large international organisation representing the central banks of the major developed countries is called:

Discuss the current exchange rate regimes of the major currencies.

An Australian export company wishes to sell its euro receipts,EUR 500 000,through an FX dealer and receives the following quote: 'Aussie mark spot is one-twenty-two fifty-five to sixty five'.What is the value of the export receipt?

Which of the following statements is correct?

Calculate the current exchange rate EUR/JPY,given these two quotes: USD/EUR 0.9780-90 USD/JPY 119.20-30

When a currency is quoted against the USD and the USD is the base currency,this is direct quoting.

The foreign exchange participant who quotes prices at which they are prepared to buy and sell foreign currencies is a:

The _______ quote is the number of units of foreign currency an Australian FX dealer is willing to take,in order to buy the unit of the quotation,that of AUD 1.

A/An _______ position is when an FX dealer enters into a forward contract to sell FX that is not held at that time.

The FX party that conducts buy and sell transactions in tow or more markets simultaneously to take advantage of price differentials is called a/an:

A Modern Financial System: An Overview

Commercial Banks

Non-Bank Financial Institutions

The Share Market and the Corporation

Corporations Issuing Equity in the Share Market

Investors in the Share Market

Forecasting Share Price Movements

Mathematics of Finance: An Introduction to Basic Concepts and Calculations

Short-Term Debt

Medium-To-Long-Term Debt

International Debt Markets

Government Debt, monetary Policy and the Payments System

An Introduction to Interest Rate Determination and Forecasting

Interest Rate Risk

Foreign Exchange: Factors That Influence the Exchange Rate

Foreign Exchange: Risk Identification and Management

An Introduction to Risk Management and Derivatives

Future Contracts and Forward Rate Agreements

Options

Interest Rate Swaps, Cross-Currency Swaps and Credit Default

Filters

If interest rate parity holds,the currency of the country with the relatively ___ interest rates will trade at a forward _ to the country with the relatively _____ interest rate.