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Foreign Currency Markets Quiz 2 (25 MCQs)

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1. An action a government uses to control trade between countries

2. When domestic currency appreciates, it benefits _____ and harms _____

3. The _____ is a monetary policy tool that use to determine the amount of deposits that banks must hold.

4. The primary purpose of the foreign-exchange market is to

5. The theory of _____ states that the prices of tradable goods, when expressed in a common currency, will tend to equalize across countries as a result of exchange rate changes.

6. The exchange rate at which demand for foreign currency is equal to its supply is called:

7. Appreciation of domestic currency will

8. There are 2 types of foreign currency trading:i. Primary marketii. Secondary marketiii. Spot marketiv. Forward market

9. Dirty float is another term for _____

10. When US dollar exchanges for Rs.50 instead of Rs55 earlier, the domestic currency shows:

11. Higher interest rates will cause hot money flows and increase demand for the currency. Higher interest rates make it relatively more attractive to save in the said country.

12. _____ focus on offering banking and other financial services to nonresident customers.

13. When an overseas banking operation is jointly owned by a parent bank and a local or foreign partner, what is it called?

14. Reduction of value of currency due to market forces

15. Countries that want to join the IMF must _____

16. The fastest method of transaction in exchanging currencies

17. Assume the exchange rate from Mexican pesos to American dollars is 8 pesos to $ 1. If a bushel of wheat is 12 pesos in Mexico, how many bushels in Mexico could $ 1200 buy?

18. Higher tariffs and quotas cause a country's currency to _____ in the _____ run, everything else held constant.

19. Contract Lot Sizes:The standard unit of a mini lot has a value of _____ ?

20. A bond that is issued by Nestle, a Swiss company, that is denominated in yen and sold to residents of Japan is most likely a _____

21. The IMF started to operate in _____

22. Rate of Exchange as determined by the government is called:

23. What is Safwah's full name?

24. The price of foreign exchange is set by _____

25. Only 5% of all foreign exchange trading is related to _____

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Foreign Currency Markets Quiz 2 (25 MCQs)

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