Reference no: EM131050106

Question 1.In reference to the futures market, a "speculator":

Question 2.A representative office:

Question 3.With regard to the O.I.P.:

Question 4.The central bank of the United States is:

Question 5.Covered Interest Arbitrage (C.I.A.) activities will result in:

Question 6.Forward parity states that:

Question 7.A liquid stock market:

Question 8.The sensitivity of the firm's consolidated financial statements to unexpected changes in the exchange rate is:

Question 9.Transaction exposure is defined as:

Question 10.There are two types of equity-related bonds:

Question 11.If one has agreed to buy foreign exchange forward:

Question 12.The SF/$ spot exchange rate is SF1.25/$ and the 180 forward premium is 8 percent. What is the outright 180 day forward exchange rate?

Question 13.The dollar-euro exchange rate is $1.25 = €1.00 and the dollar-yen exchange rate is ´100 = $1.00. What is the euro-yen cross rate?

Question 14.A dealer in British pounds who thinks that the pound is about to appreciate:

Question 15.In comparison to the current/noncurrent method, the monetary/nonmonetary method:

Question 16.Systematic risk is:

Question 17.When a currency trades at a discount in the forward market:

Question 18.When a country is more remote, with an uncommon language:

Question 19.Which of the following is most indicative of the pressure that a country's currency faces for depreciation or appreciation?

Question 20.Contingent exposure can best be hedged with:

Question 21.A major risk faced by a swap dealer is sovereign risk. This is:

Question 22.Explanations for Home Bias include:

Question 23.When exchange rates change,

Question 24.With a bearer bond,

Question 25.During the period between World War I and World War II:

Question 26.Prior to the 1870s, both gold and silver were used as international means of payment and the exchange rates among currencies were determined by either their gold or silver contents. Suppose that the dollar was pegged to gold at $30 per ounce, the French franc is pegged to gold at 90 francs per ounce and to silver at 9 francs per ounce of silver, and the German mark pegged to silver at 1 mark per ounce of silver. What would the exchange rate between the U.S. dollar and German mark be under this system?

Question 27.The management of translation exposure is best described as:

Question 28.A swap bank:

Question 29.The ultimate guardians of shareholder interest in a corporation are the:

Question 30.When a country's currency depreciates against the currencies of major trading partners: