Deck 4: Foreign Exchange and Monetary Systems

Question 1

Bretton woods is a town in _________________ in US

A)Boston
B)Seattle
C)Hampshire
D)Denver

Answer 1

Hampshire

Question 2

G -10 Countries included all of the following, except ____________

A)Belgium
B)Canada
C)France
D)China

Answer 2

China

Question 3

Under _______ monetary unit is associated with the value of circulating gold coins.

A)Gold Specie
B)Gold Exchange
C)Gold Bullion
D)Silver

Answer 3

Gold Specie

Question 4

Under ____________ there is no interference of monetary authorities to decide exchange rate.

A)Fixed
B)Floating
C)Both of these
D)Fixing

Question 5

In Smithsonian Agreement, the variation zone was increased from 1% to ____________ %'

A)2.25
B)2.5
C)2.15
D)2.35

Question 6

In ____________ president Nixon announced that dollar would no longer be convertible into gold.

A)1944
B)1945
C)1970
D)1971

Question 7

During BWS, value of USD was fixed at 1-ounce gold is equal to USD______________

A)25
B)30
C)45
D)35

Question 8

In Spot market, exchange of currencies take place on ___________

A)T +1
B)T+2
C)T+0
D)T+4

Question 9

An account which is held within a domestic country by a foreign bank, in the currency of domestic country _________________

A)Loro
B)Nostro
C)Vostro
D)SWIFT

Question 10

SBI Account with HSBC in Uk is an example of ___________

A)Loro
B)Nostro
C)Vostro
D)SWIFT

Question 11

Spot rate is also called as ________________

A)Future Price
B)Forward Price
C)Swap Price
D)Current Market Price

Question 12

Inverse quote for "1GBP = 99.1100/9900 INR is INR GBP____________

A)0.0101/0.0100
B)0.0100/0.0105
C)0.0105/0.0100
D)0.0100/0.0101

Question 13

If USD SGD 1.5423/33; SGD GBP 0.3323/33; GBP USD quotation is __________________

A)1.9512/444
B)1.9441/512
C)1.9444/512
D)1.9512/441

Question 14

Inverse quote for USD / DKK 5.7935 - 5.8085 is _________________

A)DKK /USD 0.1722-0.1726
B)USD / DKK 0.1722-0.1726
C)DKK / USD 0.1726-0.1722
D)USD / DKK 0.1726-0.1722

Question 15

Holgate principle, if bid > Ask, Swap points for forward rate are to be_________

A)Added
B)Subtracted
C)Multiplied
D)Divided

Question 16

_________ is the smallest unit by which a currency quotation can change.

A)PIP
B)Bid
C)Ask
D)Spread

Question 17

_________ deal in currencies to benefit from movements in currency exchange markets.

A)Arbitrageurs
B)Hedgers
C)Speculators
D)Spread

Question 18

__________ is real time gross settlement funds transfer system operated by the United states Federal reserve banks.

A)Swift
B)Chips
C)Chaps
D)Fedwire

Question 19

Spot used INR 60- and six-months forward is USD INR 61.AFM is ____________

A)3.33%
B)1.13%
C)2.33%
D)4.33%

Question 20

_________ is market where foreign currencies are bought and sold.

A)Stock Market
B)Forex Market
C)Capital Market
D)Debt Market

Question 21

_________ theory states that the exchange rate between currencies of two countries should be equal to the ratio of the countries price levels.

A)IRP
B)PPP
C)Fisher`s
D)T Bills