Question 1

Using the information contained in the table,for the AUD/USD exchange rate,what is the bid rate,assuming direct rates from an Australian perspective?

Accepted Answer

A)  $ 0.9940 $ 
B)  $ 0.9945 $ 
C)  $ 1.0060 $ 
D)  $ 1.0055$ 
A)  $ 0.9940 $ 
B)  $ 0.9945 $ 
C)  $ 1.0060 $ 
D)  $ 1.0055$ D

Question 2

Most financial markets are:

Accepted Answer

A)  $\text { internationally based and controlled by multi - national corporations }$ 
B)   $\text { locally based and controlled by government exchanges }$ 
C)   $\text { restricted by the domestic governmen }$ 
D)  $\text { domestically based and controlled by national govermment authoritie }$ 
A)  $\text { internationally based and controlled by multi - national corporations }$ 
B)   $\text { locally based and controlled by government exchanges }$ 
C)   $\text { restricted by the domestic governmen }$ 
D)  $\text { domestically based and controlled by national govermment authoritie }$ D

Question 3

In mid-1997,which part of the world struggled in financial crisis?

Accepted Answer

A)  South-east Asian market 
B)  New Zealand market 
C)  Asian market 
D)  USA market 
A)  South-east Asian market 
B)  New Zealand market 
C)  Asian market 
D)  USA market C

Question 4

The main additional risk arising from investing in international markets to those risks investing in domestic market is:

Accepted Answer

A)  pooled development fund 
B)  unlisted fund 
C)  managed fund 
D)  country fund 
A)  pooled development fund 
B)  unlisted fund 
C)  managed fund 
D)  country fund

Question 5

The type of rate that quotes the rate when settlement will occur on the first business day following the transaction is called:

Accepted Answer

A)  $\text { value today }$ 
B)   $\text { value tomorrow }$ 
C)  $\text { spot rate }$ 
D)  $\text { forward rate }$ 
A)  $\text { value today }$ 
B)   $\text { value tomorrow }$ 
C)  $\text { spot rate }$ 
D)  $\text { forward rate }$

Question 6

$\begin{array}{|l|l|l|}
\hline & \text { Start of period } & \text { End of period } \
\hline \text { Investment value (USD) } & \$ 1000 & \$ 1200 \
\hline \text { Exchange rate (AUD/USD) } & 1.3500 & 1.3500 \
\hline
\end{array}$
-Given the information contained in the table regarding a foreign investment an Australian investor made in the US,what is the discrete Australian dollar (AUD)return over the period?

Accepted Answer

A)  $ -12.7 \% $ 
B)  $ -10.0 \% $ 
C)  $ -8.5 \% $ 
D)  $ 7.8 \% $ 
A)  $ -12.7 \% $ 
B)  $ -10.0 \% $ 
C)  $ -8.5 \% $ 
D)  $ 7.8 \% $

Question 7

$\begin{array}{|l|r|} 
\hline& \text { Discrete return (i.e. \% change) } \
\hline \text { Investment value (USD) } & 8 \% \
\hline \text { Exchange rate (AUD/USD) } & 7 \% \
\hline
\end{array}$
-Given the information contained in the table regarding a foreign investment an Australian investor made in the US,what is the discrete Australian dollar (AUD)return over the period?

Accepted Answer

A)  $ 15.56 \% $ 
B)  $ 7.0 \% $ 
C)  $ 17.0 \% $ 
D)  $ 17.6 \% $ 
A)  $ 15.56 \% $ 
B)  $ 7.0 \% $ 
C)  $ 17.0 \% $ 
D)  $ 17.6 \% $

Question 8

Which of the following maintains a portfolio of stocks in the foreign country and is subject to trading and reporting regulations in that country?

Accepted Answer

A)  pooled development fund 
B)  unlisted fund 
C)  managed fund 
D)  country fund 
A)  pooled development fund 
B)  unlisted fund 
C)  managed fund 
D)  country fund

Question 9

Using the information contained in the table,what is the USD/EUR mid-rate?

Accepted Answer

A)  $ 1.6908 $ 
B)  $ 0.8499 $ 
C)  $ 1.1766 $ 
D)  $ 0.5914 $ 
A)  $ 1.6908 $ 
B)  $ 0.8499 $ 
C)  $ 1.1766 $ 
D)  $ 0.5914 $

Question 10

Using the information contained in the table,what amount would an investor receive from exchanging 1AUD for EUR?

Accepted Answer

A)  $ 0.5905 $ 
B)  $ 0.5855 $ 
C)  $ 1.7079 $ 
D)   $ 1.6934 $ 
A)  $ 0.5905 $ 
B)  $ 0.5855 $ 
C)  $ 1.7079 $ 
D)   $ 1.6934 $

Question 11

The type of rate that quotes the rate used in a forward contract when settlement is more than two business days after the transaction is called:

Accepted Answer

A)  $\text { value today }$ 
B)   $\text { value tomorrow }$ 
C)   $\text { spot rate }$ 
D)  $\text { forward rate }$ 
A)  $\text { value today }$ 
B)   $\text { value tomorrow }$ 
C)   $\text { spot rate }$ 
D)  $\text { forward rate }$

Question 12

The 'spread' is the difference between the:

Accepted Answer

A)  $\text { wholesale and retal rates }$ 
B)   $\text { spot and forward rates }$ 
C)   $\text { buy and sell rates }$ 
D)   $\text { value todav and value tomorrow rater }$ 
A)  $\text { wholesale and retal rates }$ 
B)   $\text { spot and forward rates }$ 
C)   $\text { buy and sell rates }$ 
D)   $\text { value todav and value tomorrow rater }$

Question 13

In the Australian forex market,a rate of 1AUD = 0.6425-0.6465 EUR would be expressed as AUD/EUR 0.6425-0.6465.

Accepted Answer

A) True 
 B)False

Question 14

In terms of the dollar value of transactions for all currencies,which of the following foreign exchange participants was the most heavily used in the most recent period?

Accepted Answer

A)  non-financial institutions 
B)  Australian financial institutions 
C)  foreign financial institutions 
D)  none of these answers 
A)  non-financial institutions 
B)  Australian financial institutions 
C)  foreign financial institutions 
D)  none of these answers

Question 15

Using the information contained in the table,what is the EUR/USD mid-rate?

Accepted Answer

A)  $ 1.1766 $ 
B)  $ 0.8499 $ 
C)  $ 1.6908 $ 
D)  $ 0.5914 $ 
A)  $ 1.1766 $ 
B)  $ 0.8499 $ 
C)  $ 1.6908 $ 
D)  $ 0.5914 $

Question 16

A foreign investor investing in the Australian equity market will have its foreign currency denominated return reduced if the Australian dollar appreciates relative to the foreign currency.

Accepted Answer

A) True 
 B)False

Question 17

The Australian dollar was pegged to a basket of currencies during what period?

Accepted Answer

A)  $1944 \text { to } 1961$ 
B)  $1960 \text { to } 1971$ 
C)  $1974 \text { to } 1978$ 
D)  $1976 \text { to } 1983$ 
A)  $1944 \text { to } 1961$ 
B)  $1960 \text { to } 1971$ 
C)  $1974 \text { to } 1978$ 
D)  $1976 \text { to } 1983$

Question 18

The NZ Alternative Market (NZAX)is the New Zealand's main board and has over 150 listed securities.

Accepted Answer

A) True 
 B)False

Question 19

$\begin{array}{|l|l|l|}
\hline & \text { Start of period } & \text { End of period } \
\hline \text { Investment value (USD) } & \$ 1000 & \$ 1200 \
\hline \text { Exchange rate (AUD/USD) } & 1.3500 & 1.3500 \
\hline
\end{array}$
-An Australian investor purchases a European-based investment at a price of EUR52.50 when the exchange rate was EUR0.6500/AUD.If the investment is sold for a price of EUR55.00 and the investor's AUD discrete return was 10%,what was the exchange rate when the investment was sold?

Accepted Answer

A)  $ 0.624 $ 
B)  $ 0.676 $ 
C)  $ 1.538 $ 
D)  $ 1.600 $ 
A)  $ 0.624 $ 
B)  $ 0.676 $ 
C)  $ 1.538 $ 
D)  $ 1.600 $

Question 20

Which of the following characteristics typically applies to an emerging market?

Accepted Answer

A)  It has existed for less than five years. 
B)  It is based in a third-world country. 
C)  It has a large degree of inflation. 
D)  It has recently undergone a large period of growth 
A)  It has existed for less than five years. 
B)  It is based in a third-world country. 
C)  It has a large degree of inflation. 
D)  It has recently undergone a large period of growth

Using the information contained in the table,for the AUD/USD exchange rate,what is the bid rate,assuming direct rates from an Australian perspective?

Most financial markets are:

In mid-1997,which part of the world struggled in financial crisis?

The main additional risk arising from investing in international markets to those risks investing in domestic market is:

The type of rate that quotes the rate when settlement will occur on the first business day following the transaction is called:

Start of period End of period Investment value (USD) \ 1000 \ 1200 Exchange rate (AUD/USD) 1.3500 1.3500 -Given the information contained in the table regarding a foreign investment an Australian investor made in the US,what is the discrete Australian dollar (AUD)return over the period?

Discrete return (i.e. \% change) Investment value (USD) 8\% Exchange rate (AUD/USD) 7\% -Given the information contained in the table regarding a foreign investment an Australian investor made in the US,what is the discrete Australian dollar (AUD)return over the period?

Which of the following maintains a portfolio of stocks in the foreign country and is subject to trading and reporting regulations in that country?

Using the information contained in the table,what is the USD/EUR mid-rate?

Using the information contained in the table,what amount would an investor receive from exchanging 1AUD for EUR?

The type of rate that quotes the rate used in a forward contract when settlement is more than two business days after the transaction is called:

The 'spread' is the difference between the:

In the Australian forex market,a rate of 1AUD = 0.6425-0.6465 EUR would be expressed as AUD/EUR 0.6425-0.6465.

In terms of the dollar value of transactions for all currencies,which of the following foreign exchange participants was the most heavily used in the most recent period?

Using the information contained in the table,what is the EUR/USD mid-rate?

A foreign investor investing in the Australian equity market will have its foreign currency denominated return reduced if the Australian dollar appreciates relative to the foreign currency.

The Australian dollar was pegged to a basket of currencies during what period?

The NZ Alternative Market (NZAX)is the New Zealand's main board and has over 150 listed securities.

Which of the following characteristics typically applies to an emerging market?

The Investment Decision

Australian Financial Markets

Financial Management: Derivative Instruments and Information Sources

Money Market Securities

Bonds

Investor Preferences and Portfolio Concepts

Risky Asset Pricing Models and the Capm

Alternative Risky Asset Pricing Models

Concepts and Applications of Market Efficiency

Equity Valuation Models

Macro- and Industry Analysis of Share Markets

Qualitative Stock Selection

Quantitative Company Analysis

Futures and Forward Contracts

Option Contracts

Advanced Issues in Options

Alternative Investments

Portfolio Management

Performance Evaluation of Managed Funds

Filters

Exam 3: The International Investment Environment

Using the information contained in the table,for the AUD/USD exchange rate,what is the bid rate,assuming direct rates from an Australian perspective?

Most financial markets are:

In mid-1997,which part of the world struggled in financial crisis?

The main additional risk arising from investing in international markets to those risks investing in domestic market is:

The type of rate that quotes the rate when settlement will occur on the first business day following the transaction is called:

Start of period End of period Investment value (USD) \ 1000 \ 1200 Exchange rate (AUD/USD) 1.3500 1.3500 -Given the information contained in the table regarding a foreign investment an Australian investor made in the US,what is the discrete Australian dollar (AUD)return over the period?

Discrete return (i.e. \% change) Investment value (USD) 8\% Exchange rate (AUD/USD) 7\% -Given the information contained in the table regarding a foreign investment an Australian investor made in the US,what is the discrete Australian dollar (AUD)return over the period?

Which of the following maintains a portfolio of stocks in the foreign country and is subject to trading and reporting regulations in that country?

Using the information contained in the table,what is the USD/EUR mid-rate?

Using the information contained in the table,what amount would an investor receive from exchanging 1AUD for EUR?

The type of rate that quotes the rate used in a forward contract when settlement is more than two business days after the transaction is called:

The 'spread' is the difference between the:

In the Australian forex market,a rate of 1AUD = 0.6425-0.6465 EUR would be expressed as AUD/EUR 0.6425-0.6465.

In terms of the dollar value of transactions for all currencies,which of the following foreign exchange participants was the most heavily used in the most recent period?

Using the information contained in the table,what is the EUR/USD mid-rate?

A foreign investor investing in the Australian equity market will have its foreign currency denominated return reduced if the Australian dollar appreciates relative to the foreign currency.

The Australian dollar was pegged to a basket of currencies during what period?

The NZ Alternative Market (NZAX)is the New Zealand's main board and has over 150 listed securities.

Which of the following characteristics typically applies to an emerging market?

The Investment Decision

Australian Financial Markets

Financial Management: Derivative Instruments and Information Sources

Money Market Securities

Bonds

Investor Preferences and Portfolio Concepts

Risky Asset Pricing Models and the Capm

Alternative Risky Asset Pricing Models

Concepts and Applications of Market Efficiency

Equity Valuation Models

Macro- and Industry Analysis of Share Markets

Qualitative Stock Selection

Quantitative Company Analysis

Futures and Forward Contracts

Option Contracts

Advanced Issues in Options

Alternative Investments

Portfolio Management

Performance Evaluation of Managed Funds

Filters