Exam 9: Global Foreign-Exchange Markets

In 2010,what was the top remittance-receiving country in the world?

What are the two major segments of the foreign exchange market? What types of foreign exchange instruments are traded within these markets?

Which term refers to money denominated in the currency of another nation or group of nations?

Which of the following best explains why migrant workers in Dubai send money back home?

Stella,who works and lives in San Diego,wants to send money to her mother who lives in a small village south of Puerto Vallarta,Mexico. Stella typically uses Western Union to handle the transaction. Which of the following is the most likely reason that Stella uses Western Union?

In an FX swap,one currency is swapped for another on one date and then swapped back on a future date.

Which of the following is an example of interest arbitrage?

If a foreign currency is quoted in American terms (the direct quote)and the forward rate is greater than the spot rate,the foreign currency is selling at a ________.

Melissa,a foreign exchange trader,wants to buy euros from Stephanie. Which of the following is the price at which Melissa is willing to buy euros?

Albert,an employee at Morgan Stanley,has been given the task of handling the foreign exchange for a customer who is moving from Brazil to Switzerland in one week. Which of the following should Albert most likely use when exchanging the client's Brazilian real for Swiss francs?

Which of the following is NOT one of the top exchanges that trade in foreign currency futures and options?

The U.S. dollar is most likely traded widely because it is ________.

The pound-dollar forward rate for pounds is $1.9068,and the spot rate is $1.9100. Pounds are selling at a ________.

In foreign-exchange markets,reporting dealers ________.

Companies most likely use the foreign exchange market to ________.

Anita,an employee at ABX Partners,a hedge fund firm,has purchased euros because she believes that the euro will strengthen against other currencies. Which term best describes Anita's activities?

Commercial banks look at foreign-exchange trading as a service extended primarily to important customers,not as a major business activity of its own.

In a ________,one party directs another party to make payment.

Most foreign exchange is handled through voice brokers.

The U.S. dollar is widely traded because it is a transaction currency in many international commodity markets.