Exam 6: International Finance and Trade

To protect against loss as a result of adverse currency fluctuations,an export firm may:

A banker's sight draft differs from an ordinary bank check in that:

The Board of Governors of the Federal Reserve System considers bankers' acceptances used in international trade to be:

Intervention by central banks in the flexible exchange rate system is called:

A bankers' acceptance differs from a trade draft in that:

Key factors that influence currency exchange rates include all of the following EXCEPT:

Large multinational corporations enjoy special opportunities for risk reduction or speculative gains from currency activities:

During the latter part of the decade ending in 2010:

Which of the following statements is most correct?

Arbitrage is the simultaneous buying of securities in one market and selling them in another to make a profit from price differences in the two markets.

Balances in foreign accounts are maintained for purposes of dealing in foreign exchange by:

Which of the following statements is most correct?

The Export-Import Bank:

The traveler's letter of credit is issued by a bank to banks in other countries authorizing foreign banks to cash checks or purchase drafts presented by the bearer.

For most of the remainder of the decade after the September 11th terrorist attacks the Fed maintained a high liquidity,low interest rate environment,which was accompanied by:

Economic Risk is the risk associated with the possibility that a national government might confiscate or expropriate assets held by foreigners.

The bankers' acceptance and the documentary draft involve four principal parties: the importer,the importer's bank,the exporter,and the exporter's bank.

_________________________ was created to help economic growth in developing countries.

The current account balance shows the flow of income into and out of the United States during a specified time period.

_________________________ was an international monetary system in which the U.S.dollar was valued in gold and other exchange rates were pegged to the dollar.