Question

Part 1 One-choice questions (4' for each ques 1. Please choose the quotation which is direct ou A in Germany USD1 = FUR1.4567 C in US USD 1 AUD 1.1625 hich is direct quotation Bin UK GBPUSDI 6752 D in France EUR USD 1.1752 expect to receive 50 pounds sterling at the end of 60 days. You can remove 2. Assume you are an American exporter and exp the risk of loss due to a devaluation of the pound sterling - A Selling sterling in the forward market for 60-day delivery Buying sterling now and selling it at the end of 60 days sering the dollar equivalent in the forward market for 60-day o Keeping the sterling in Britain after it is delivered to you 3. A major difference between the spot me A The immediate delivery of currencies C Currencies traded for future delivery forward market is that the spot market deals with: B The merchandise trade account D Hedging of international currency risks U.S. dollar is 100 yen per dollar. A Japanese stereo with a suppose the exchange rate between the Japanese yen and the U.S. dollar 150 price of 60,000 yen will cost: A USD 60 BUSD 600 None of the above CUSD 6,000 - 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 C spread rate D 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 B option Carbitrage D spread 7. If yesterday USD1 would buy 1 091 South Korean won, but today USD1 will only buy 1 070 won; the 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 C the beginning of the gold standard D the elimination of paper currencies d and buys a USD10,000 General Motors (GM) bond maturing in ten years, paving an 9. A saver has USD10,000 saved and buys a USD10,000 General Moto interest rate of 9.5 percent per annum. This transaction is an example of A indirect finance B direct finance C none of the above

no need to answar this

Answer 1

1. C In US , 1 USD = 1.1625 AUD

2. A

3. A

4. B

5. A

6. D

7. B

8. A

9. B