CHAPTER 5 The Market for Foreign ExchangeWord文件下载.docx
- 文档编号:16183485
- 上传时间:2022-11-21
- 格式:DOCX
- 页数:17
- 大小:87.52KB
CHAPTER 5 The Market for Foreign ExchangeWord文件下载.docx
《CHAPTER 5 The Market for Foreign ExchangeWord文件下载.docx》由会员分享,可在线阅读,更多相关《CHAPTER 5 The Market for Foreign ExchangeWord文件下载.docx(17页珍藏版)》请在冰豆网上搜索。
ShrewsburyHerbalProducts,Ltd.
1Theworld’slargestforeignexchangetradingcenteris:
a)NewYork
b)Tokyo
c)London
d)HongKong
Answer:
c)
2Onaverage,worldwidedailytradingofforeignexchangeis
a)impossibletoestimate
b)$15billion
c)$504billion
d)$1.88trillion
d)
3Theforeignexchangemarketcloses
a)Never
b)4:
00p.m.EST(NewYorktime)
c)4:
00p.m.GMT(Londontime)
d)4:
00p.m.(Tokyotime)
a)
4Mostforeignexchangetransactionsarefor:
a)Interventionbycentralbanks
b)Interbanktradesbetweeninternationalbanksornonbankdealers
c)retailtrade
d)purchaseofhardcurrencies
b)
5Thedifferencebetweenabrokerandadealeris
a)Dealersselldrugs,brokerssellhouses.
b)Brokersbringtogetherbuyersandsellers,butcarrynoinventory.Dealersstandreadytobuyandsellfromtheirinventory.
c)Brokerstransactinstocksandbonds;
currencyisboughtandsoldthroughdealers.
d)Noneoftheabove
Answerb)
Rationale:
ifsomeonecomplainsabouta)beingcorrect,askthemwhowouldsellacrackhouseoramethlab.
6MostInterbanktradesare
a)Speculativeorarbitragetransactions
b)Simpleorderprocessingfortheretailclient
c)Overnightloansfromonebanktoanother
d)Brokeredbydealers
Answera)
7Atthewholesalelevel
a)MosttradingtakesplaceOTCbetweenindividualsontheflooroftheexchange
b)Mosttradingtakesplaceoverthephone
c)MosttradingflowsoverReutersandEBSplatforms
d)Mosttradingflowsthroughspecialized“broking”firms
8Interventionintheforeignexchangemarketistheprocessof:
a)Acentralbankrequiringthecommercialbanksofthatcountrytotradeatasetpricelevel.
b)Commercialbanksindifferentcountriescoordinatingeffortsinordertostabilizeoneormorecurrencies.
c)Acentralbankbuyingorsellingitscurrencyinordertoinfluenceitsvalue.
d)Thegovernmentofacountryprohibitingtransactionsinoneormorecurrencies.
c)
9ConsideraU.S.importerdesiringtopurchasemerchandisefromaDutchexporterinvoicedineuros,atacostof€512,100.TheU.S.importerwillcontacthisU.S.bank(whereofcoursehehasanaccountdenominatedinU.S.dollars)andinquireabouttheexchangerate,whichthebankquotesas€1.0242/$1.00.Theimporteracceptsthisprice,sohisbankwill____________theimporter’saccountintheamountof____________.
a)Debit,$500,000
b)Credit,€512,100
c)Credit,$500,000
d)Debit€512,100
debit,sincetheimporterispaying.$500,000=€512,100×
$1.00/€1.0242
10Thespotmarket
a)Involvesthealmost-immediatepurchaseorsaleofforeignexchange.
b)Involvesthesaleoffutures,forwards,andoptionsonforeignexchange
c)Takesplaceonlyonthefloorofaphysicaltradingfloor
d)Alloftheabove.
11Spotforeignexchangetrading
a)accountsforabout5percentofallforeignexchangetrading
b)accountsforabout20percentofallforeignexchangetrading
c)accountsforabout35percentofallforeignexchangetrading
d)accountsforabout70percentofallforeignexchangetrading
Country
U.S.$equiv.
CurrencyperU.S.$
Tuesday
Monday
Britain(Pound)£
62,500
1.6000
1.6100
0.625
0.6211
1MonthForward
1.6300
0.6173
3MonthsForward
1.6600
0.6024
6MonthsForward
1.7200
0.5814
12MonthsForward
1.8000
0.5556
12Usingthetableshown,whatisthemostcurrentspotexchangerateshownforBritishpounds?
Useadirectquote
a)$1.61=£
1.00
b)$1.60=£
c)$1.00=£
d)$1.72=£
13ItiscommonpracticeamongcurrencytradersworldwidetobothpriceandtradecurrenciesagainsttheU.S.dollar.Infact,BISstatisticsindicatethatabout__percentofcurrencytradingintheworldinvolvestheU.S.dollarononesideofthetransaction
a)90percent
b)75percent
c)45percent
d)15percent
14Supposethatthecurrentexchangerateis€0.80=$1.00.Thedirectquote,fromtheU.S.perspectiveis
a)€1.00=$1.25
b)€0.80=$1.00
c)£
1.00=$1.80
Thedirectquotation,fromtheU.S.perspective,thepriceofoneunitoftheforeigncurrencypricedinU.S.dollars.
15TheBidprice
a)Isthepricethatthedealerhaspaidforsomething,hishistoricalcost
b)Isthepricethatadealerstandsreadytopay
c)RefersonlytoauctionslikeeBay,notoverthecountertransactionswithdealers
d)Isthepricethatadealerstandsreadytosellat
b
Thebidpriceisthepriceadealerwillpay;
theaskpriceisthepricehechargestosell.Answera)isabittricky,butthedealer’shistoricalcostisnotnecessarilythepriceatwhichhewillbewillingtobuymore
16Supposethespotaskexchangerate,Sa($|£
),is$1.90=£
1.00andthespotbidexchangerate,Sb($|£
),is$1.89=£
1.00.Ifyouweretobuy$10,000,000worthofBritishpoundsandthensellthemfiveminuteslater,howmuchofyour$10,000,000wouldbe“eaten”bythebid-askspread?
a)$1,000,000
b)$52,910.05
c)$100,000
d)$52,631.58
17Ifthe$/£
bidandaskpricesare$1.50and$1.51,respectively,thecorresponding£
/$bidandaskpricesare:
a)£
0.6667and£
0.6623
b)$1.51and$1.50
0.6623and£
0.6667
d)cannotbedeterminedwiththeinformationgiven
£
1/$1.51=askprice=£
0.6623bidprice/$1;
£
1/$1.50bidprice=£
0.6667askprice/$1.
Seeequation5-3:
18Inconversation,InterbankFXtradesuseashorthandabbreviationinexpressingspotcurrencyquotations.Considera$/£
bid-askquoteof$1.9072-$1.9077.The“bigfigure”,assumedtobeknowntoalltradersis:
a)$1.9077
b)1
c)1.90
d)77
19intheInterbankmarket,thestandardsizeofatradeamonglargebanksinthemajorcurrenciesis
a)fortheU.S.-dollarequivalentof$10,000,000,000
b)fortheU.S.-dollarequivalentof$10,000,000
c)fortheU.S.-dollarequivalentof$100,000.
d)fortheU.S.-dollarequivalentof$1,000
20AdealerinBritishpoundswhothinksthatthepoundisabouttoappreciate
a)Maywanttowidenhisbid-askspreadbyraisinghisaskprice
b)Maywanttolowerhisbidprice
c)Maywanttolowerhisaskprice
Adealerwhothinksthatthepoundisabouttoappreciatewillwanttoincreasehisinventory,noneofthestrategieslistedwillaccomplishthis.Whilea)
Country
Euro€62,500
1.2000
0.833333
1.2100
0.82645
1.2300
0.813008
1.2600
0.793651
1.2900
1.3200
0.775194
0.7575758
21Usingthetableshown,whatisthespotcross-exchangeratebetweenpoundsandeuro?
a)€1.00=£
0.75
b)£
1.33=€1.00
1.00=€0.75
d)noneoftheabove
youalsogetthesameresultwithindirectquotes
22Thedollar-euroexchangerateis$1.25=€1.00andthedollar-yenexchangerateis¥
100=$1.00.Whatistheeuro-yencrossrate?
a)¥
125=€1.00
b)¥
1.00=€125
c)¥
1.00=€0.80
23TheAUD/$spotexchangerateisAUD1.60/$andtheSF/$isSF1.25/$.TheAUD/SFcrossexchangerateis:
a)0.7813
b)2.0000
c)1.2800
d)0.3500
24Theeuro-poundcrossexchangeratecanbecomputedas:
a)S(€/£
)=S($/£
)×
S(€/$)
b)
c)
d)alloftheabove
25SupposeabankcustomerwishestotradeoutofBritishpoundsandintoSwissfrancs.
a)Indealerjargon,thisisacurrencyagainstcurrencytrade
b)ThebankwillfrequentlyhandlesuchatradebysellingBritishpoundsforU.S.dollarsandthenbuyingfrancswithU.S.dollars.
c)ThebankwouldselltheBritishpoundsdirectlyforSwissfrancs.
d)a)andb)butnotc)
26Includingthetransactionscostsofthebid-askspread,theeuro-poundcrossexchangerateforacustomerwhowantstoselleuroandbuypoundscanbecomputedas
a)Sb(£
/€)=Sb($/€)×
Sb(£
/$)
b)Sa(€/£
)=Sa(€/$)×
Sa($/£
)
c)Sb(€/£
)=Sb($/€)×
d)Alloftheabove
Thebankcouldalternativelyquoteitscustomeranaskpriceforpoundsintermsofeuroorquoteabidpriceforeurointermsofpounds.Someonewhosellseurowillsellthemtothedealerfordollarsatthedealer’sbidprice,Sb($/€),thenhewillbuypoundswithdollarsfromthedealerathisaskingprice
- 配套讲稿:
如PPT文件的首页显示word图标,表示该PPT已包含配套word讲稿。双击word图标可打开word文档。
- 特殊限制:
部分文档作品中含有的国旗、国徽等图片,仅作为作品整体效果示例展示,禁止商用。设计者仅对作品中独创性部分享有著作权。
- 关 键 词:
- CHAPTER The Market for Foreign Exchange
链接地址:https://www.bdocx.com/doc/16183485.html