Question

studie se) IL 3 Quiz 1 Name (in Chinese) estions (4' for each question) Part 1 One-choice questions (4' for each que * Please choose the quotation which is direct quota A in Germany USDI - FUR1.4567 USD 1 - AUD 1. 1625 BUK GBPUSD16752 In France EURI-USD 1.1752 ounds sterline at the end of 60 days. You can remove and expect to rece S 2. Assume you are an American exporterar the risk of loss due to a devaluation of the pound sterling A Selling sterling in the forward market for 60-day delivery B Buying sterling now and selling it at the end of 60 day ering the dollar equivalent in the forward market for 60-day dedy Keeping the sterling in Britain after it is delivered to you rence between the spot market and the forward market is that the spot man 3. A major difference between the spot market and A The immediate delivery of currencies C Currencies traded for future delivery und market is that the spot market deals with: _ B The merchandise trade account D Hedging of international currency risks the Japanese yen and the US dollar is 100 ven per dollar. A Japanese stereo with a 4. Suppose the exchange rate between the Japanese price of 60,000 yen will cost: A USD 60 BUSD 600 CUSD 6,000 None of the above refers to the price that a bank is willing to pay for a unit 5. In the interbank market for foreign exchange, the- of foreign currency A offer rate B bid rate Cspread rate transaction rate - refers to the difference between the offer rate and the 6. In the interbank market for foreign exchange, the bid rate A cross rate Boption Carbitrage D spread the 7. If yesterday USD1 would buy 1 091 South Korean won, but today USD1 will only buy 1 070 won A dollar has appreciated in value. B dollar has depreciated in value. C demand for dollars in the foreign exchange market has increased relative to the supply of won. D Won price of dollars has gone up. 8. The collapse of the Bretton Woods system marked ). A the end of floating exchange rates and a move to fixed exchange rates B the end of fixed exchange rates and a move to an eclectic currency arrangement Cthe beginning of the gold standard D the elimination of paper currencies A saver has USD10,000 saved and buys a USD10,000 General Motors (GM) bond maturing in te USD10,000 General Motors (GM) bond maturing in ten years, paying an interest rate of 9.5 percent per annum. This transaction is an example of A indirect finance B direct finance Cnone of the above

Answer 1

1) In Germany 1USD=1.4567 EUR

2) D - Keep the sterling in Britain after received

3) A

4) 600 USD - B

5) B

6) D

7) B

8) A

9) B