Exam 8: Global Foreign-Exchange Markets

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If Toranaga-san,who works for a Japanese trading company that operates in Japanese yen,wanted to purchase Spanish castanets from a company in Barcelona and needed Euros to complete the transaction,he would use the ________ to gain access to spot Euros.

(Multiple Choice)

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Question 41

The Chicago Mercantile Exchange and NASDAQ are part of the OTC market.

(True/False)

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Question 42

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

(True/False)

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Question 43

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

(Multiple Choice)

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Question 44

Although most foreign-exchange activity takes place through big money center banks,the use of electronic trading has allowed even regional banks to deal directly in foreign-exchange markets.

(True/False)

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Question 45

The ________ is the most widely traded currency in the world.

(Multiple Choice)

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Question 46

In foreign-exchange markets,reporting dealers are ________.

(Multiple Choice)

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Question 47

An irrevocable letter of credit is the basis for multilateral netting.

(True/False)

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Question 48

In foreign-exchange markets,reporting dealers trade more foreign exchange with other reporting dealers than with any other category of users.

(True/False)

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Question 49

Companies most likely use the foreign-exchange market to ________.

(Multiple Choice)

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Question 50

The bid is the price at which the trader is willing to sell foreign currency.

(True/False)

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Question 51

One reason that companies use the foreign-exchange market is to diversify their expenses from other sources.

(True/False)

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Question 52

Which of the following is NOT a reason a company would deal in foreign exchange?

(Multiple Choice)

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Question 53

The relationship between the value of the Brazilian and Chinese currencies is known as the ________.

(Multiple Choice)

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Question 54

Arbitrage is the purchase of foreign currency on one market for immediate resale on a foreign market in order to profit from a price discrepancy.

(True/False)

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Question 55

Which of the following is an example of interest arbitrage?

(Multiple Choice)

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Question 56

A currency sells at a forward premium when the forward rate is greater than the spot rate.

(True/False)

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Question 57

The pound-dollar forward rate for pounds is $1.9068,and the spot rate is $1.9059.Pounds are selling at a ________.

(Multiple Choice)

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Question 58

In foreign-exchange markets,reporting dealers ________.

(Multiple Choice)

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Question 59

Which of the following is LEAST relevant to being designated by Euromoney magazine as a top foreign-exchange dealer?

(Multiple Choice)

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Question 60

Showing 41 - 60 of 100

If Toranaga-san,who works for a Japanese trading company that operates in Japanese yen,wanted to purchase Spanish castanets from a company in Barcelona and needed Euros to complete the transaction,he would use the ________ to gain access to spot Euros.

The Chicago Mercantile Exchange and NASDAQ are part of the OTC market.

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

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

Although most foreign-exchange activity takes place through big money center banks,the use of electronic trading has allowed even regional banks to deal directly in foreign-exchange markets.

The ________ is the most widely traded currency in the world.

In foreign-exchange markets,reporting dealers are ________.

An irrevocable letter of credit is the basis for multilateral netting.

In foreign-exchange markets,reporting dealers trade more foreign exchange with other reporting dealers than with any other category of users.

Companies most likely use the foreign-exchange market to ________.

The bid is the price at which the trader is willing to sell foreign currency.

One reason that companies use the foreign-exchange market is to diversify their expenses from other sources.

Which of the following is NOT a reason a company would deal in foreign exchange?

The relationship between the value of the Brazilian and Chinese currencies is known as the ________.

Arbitrage is the purchase of foreign currency on one market for immediate resale on a foreign market in order to profit from a price discrepancy.

Which of the following is an example of interest arbitrage?

A currency sells at a forward premium when the forward rate is greater than the spot rate.

The pound-dollar forward rate for pounds is $1.9068,and the spot rate is $1.9059.Pounds are selling at a ________.

In foreign-exchange markets,reporting dealers ________.

Which of the following is LEAST relevant to being designated by Euromoney magazine as a top foreign-exchange dealer?

Globalization and International Business

The Cultural Environments Facing Business

The Political and Legal Environments Facing Business

The Economic Environments Facing Businesses

International Trade and Factor-Mobility Theory

Governmental Influence on Trade

Cross-National Cooperation and Agreements

The Determination of Exchange Rates

Global Capital Markets

Globalization and Society

The Strategy of International Business

Country Evaluation and Selection

Export and Import

Direct Investment and Collaborative Strategies

The Organization of International Business

Marketing Globally

Global Manufacturing and Supply-Chain Management

International Accounting and Finance Issues

International Human Resource Management

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