Question 1

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

Accepted Answer

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

Question 2

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

Accepted Answer

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

Question 3

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

Accepted Answer

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

Question 4

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

Accepted Answer

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

Question 5

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

Accepted Answer

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

Question 6

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

Accepted Answer

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

Question 7

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

Accepted Answer

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

Question 8

In Spot market, exchange of currencies take place on ___________

Accepted Answer

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

Question 9

_________ is market where foreign currencies are bought and sold.

Accepted Answer

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

Question 10

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

Accepted Answer

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

Question 11

Spot rate is also called as ________________

Accepted Answer

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

Question 12

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

Accepted Answer

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

Question 13

SBI Account with HSBC in Uk is an example of ___________

Accepted Answer

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

Question 14

Inverse quote for USD / DKK 5.7935 - 5.8085 is _________________

Accepted Answer

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

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

Accepted Answer

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

Question 16

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

Accepted Answer

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

Question 17

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

Accepted Answer

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

Question 18

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

Accepted Answer

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

Question 19

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

Accepted Answer

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

Question 20

Bretton woods is a town in _________________ in US

Accepted Answer

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

Exam 4: Foreign Exchange and Monetary Systems