FINA 4500 Chapter 3 Exam Questions with
Verified Correct Answers
The most recent average daily trading volume in the FX market is close to:
$5 trillion
Which country is the largest venue for the FX market?
UK
The largest volume of currency trading takes place in the market between:
USD and EUR
The quote CAD/USD = 1.0575means:
1 USD = CAD 1.0575
If 1 AUD = $0.6535, this also implies that:
USD/AUD = 0.6535
If 1 USD = CHF 1.0204, this also implies that:
USD/CHF = 0.9800
Suppose 1 EUR = USD 1.1245. A US company generates a sales revenue of EUR 80,000,000 in
Europe. That company's sales revenue in USD is:
89,960,000
Suppose CAD/USD = 1.0575. A US company's cost of production is CAD 60,000,000 in a
Canadian plant. That company's cost of production in USD is:
56,737,589
Suppose USD/GBP = 1.4368. A UK-based company generates a sales revenue of USD
50,000,000 in the US. That company's sales revenue in GBP is:
34,799,555
Suppose 1 USD = CHF 1.0204. A Swiss company's cost of production in a US factory is USD
40,000,000. That company's cost of production in CHF is
Verified Correct Answers
The most recent average daily trading volume in the FX market is close to:
$5 trillion
Which country is the largest venue for the FX market?
UK
The largest volume of currency trading takes place in the market between:
USD and EUR
The quote CAD/USD = 1.0575means:
1 USD = CAD 1.0575
If 1 AUD = $0.6535, this also implies that:
USD/AUD = 0.6535
If 1 USD = CHF 1.0204, this also implies that:
USD/CHF = 0.9800
Suppose 1 EUR = USD 1.1245. A US company generates a sales revenue of EUR 80,000,000 in
Europe. That company's sales revenue in USD is:
89,960,000
Suppose CAD/USD = 1.0575. A US company's cost of production is CAD 60,000,000 in a
Canadian plant. That company's cost of production in USD is:
56,737,589
Suppose USD/GBP = 1.4368. A UK-based company generates a sales revenue of USD
50,000,000 in the US. That company's sales revenue in GBP is:
34,799,555
Suppose 1 USD = CHF 1.0204. A Swiss company's cost of production in a US factory is USD
40,000,000. That company's cost of production in CHF is
