chuong 3 quiz Thị trường tài chính và các định chế tài chính Madura

True False status: not answered correct: true your answer: 3 The Eurocurrency market consists mainly of loans and deposits, typically of $1 million or more.. status: not answered co

Trang 1

Which of the following is a direct quote from the U.S perspective?

a $1.60/Pound

b E0.95/$

c C$1.65/$

d Y100/Euro

status: not answered ()

correct: a

your answer:

2

International diversification can increase risk-adjusted returns if countries' returns are not perfectly positively correlated

True

False

correct: true

your answer:

3

The Eurocurrency market consists mainly of loans and deposits, typically of $1 million or more

True

False

correct: true

your answer:

Trang 2

The bid-ask spread in the foreign exchange market is:

a smaller for actively traded (major) currencies

b the compensation to banks for bearing risk

c the transactions cost for buying and selling currencies

d All of the answers are correct

correct: d

your answer:

5

The Bretton Woods agreement was a system of fixed exchange rates, though not a Gold Standard

True

False

correct: true

your answer:

6

The Eurocurrency market is the market for the Euro

True

False

correct: false

your answer:

7

A company needs to buy E10 million The quote is E0.950/$-0.980/$ How much does it cost the company to buy the Euros?

a $9,800,000

b $10,526,316

Trang 3

c $10,204,082

d None of the answers are correct

correct: c

your answer:

8

There is a fully integrated world stock market

True

False

correct: false

your answer:

9

The foreign exchange market closes at:

a 5 PM Eastern Standard Time

b 5 PM Greenwich Mean Time

c 5 PM in Tokyo

d never

correct: d

your answer:

10

Because the U.S capital markets are so large, American companies do not have to list

on foreign stock exchanges

True

False

correct: false

your answer:

Trang 4

The center of worldwide foreign exchange trading is:

a London

b New York

c Paris

d Tokyo

correct: a

your answer:

12

The Eurocurrency market primarily concentrates on:

a long-term lending in Euros to borrowers outside of the EU

b short-term lending (one year or less) in any currency outside the country of issue

c medium-term lending of dollars in Europe

d placing bonds with investors in Japan

correct: b

your answer:

13

A cross-rate is an exchange rate where neither currency is the dollar

True

False

correct: true

your answer:

14

The bid-ask spread represents compensation to the market maker for making the market

in foreign exchange

Trang 5

True

False

correct: true

your answer:

15

Which of the following are characteristics of most Eurobonds?

a call provisions

b bearer form

c few restrictive covenants

correct: d

your answer:

16

A bank quotes the pound at $1.60-$1.65 The percent bid-ask spread is:

a 3.125%

b 3.030%

c 5.000%

correct: b

your answer:

Trang 6

You just received a gift from a friend consisting of 1,000 Thai baht, which you would like to exchange for Australian dollars (A$) You observe that exchange rate quotes for the baht are currently $.0230/TB - $0.0250/TB, while quotes for the Australian dollar are $.5760/A$ - $.5820/A$ How many Australian dollars should you expect to receive for your baht?

a A$39.93

b A$25,043.48

c A$553.00

correct: a

your answer:

18

An indirect quote for Japanese yen is:

a the number of yen per dollar

b the value of one yen in dollars

c a right, not an obligation, to exchange yen in the future

d the rate set today to trade yen in the future

correct: a

your answer:

19

Only private companies, not governments, borrow in the Eurobond market

True

False

correct: false

your answer:

Trang 7

The spot foreign exchange market is composed of:

a interbank dealers

b foreign exchange brokers

c electronic matching systems

correct: d

your answer:

21

Euros are the currency of denomination for the majority of bonds in the Eurobond market

True

False

correct: false

your answer:

22

Exchange rates in the Gold Standard were set through the value of currencies in terms of gold

True

False

correct: true

your answer:

23

Shares of non-U.S firms that issue stock in the U.S and list on the U.S stock exchanges are called American Depository Receipts

True

False

Trang 8

correct: true

your answer:

24

A syndicate is:

a a group of companies that join together to borrow money more cheaply

b a group of banks to underwrite loans

c a group of governments who join together to issue debt more cheaply

correct: a

your answer:

25

The foreign exchange market trades somewhere 24 hours a day

True

False

correct: true

your answer:

26

Average daily worldwide trading of currencies is:

a $100 billion

b $500 billion

c $1 trillion

d $1.5 trillion

correct: d

your answer:

Trang 9

The Eurocurrency market is primarily used by multinational firms for hedging long-term business contracts

True

False

correct: false

your answer:

28

Most exchange rates are quoted in direct terms from the U.S perspective

True

False

correct: false

your answer:

29

Which of the following statements are true?

a Speculators and arbitragers take risk to make a profit while hedgers do not

b.Hedgers and speculators take positions only to make a profit while arbitragers do not

c Arbitragers and speculators make riskless profits while hedgers do not

d Arbitragers make riskless profits while hedgers take positions to reduce risk

correct: d

your answer:

Trang 10

Which of the following are provisions of the Single European Act?

a Mobility of capital throughout Europe

b

A bank established in any one of the EU countries has the right to expand into any

or all of the other EU countries

c

Standardization of regulations regarding competition, mergers, and taxes

throughout Europe

correct: d

your answer:

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