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Exam (elaborations)

BA 310 CHAPTER 4 QUESTIONS AND VERIFIED ANSWERS

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BA 310 CHAPTER 4 QUESTIONS AND VERIFIED ANSWERS










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Uploaded on
August 8, 2025
Number of pages
13
Written in
2025/2026
Type
Exam (elaborations)
Contains
Questions & answers

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in the forward market, the selling of a currency at a spot rate that is more than the
forward rate


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Premium

, prices of a foreign currency in dollars, or the number of dollars per one unit of foreign
currency


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Direct quote




the net of merchandise exports and merchandise imports


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Trade Balance




the practice of using the dollar or some other foreign currency together with, or
instead of, a domestic currency in a country


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Dollarization




theory stating that interest rates on bonds in different countries should be the same,
as investors would buy and sell these bonds to make arbitrage profits until this
condition holds


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