MGMT660 Final fully
solved & updated
reporting dealers - answer financial institutions that actively
participate in local and global foreign-exchange markets
true - answer In foreign-exchange markets, reporting dealers trade
more foreign exchange with other reporting dealers than with any
other category of users.
exchange rate - answer The relationship between the value of the
Brazilian (Real) and the Chinese (Yuan) is known as the ________.
irrevocable line of credit - answer can be amended only if all parties
involved agree
confirmed letter of credit - answer A letter of credit that provides an
exporter with the guarantee of another bank in addition to the
importer's bank is called ________.
cross rate - answer Peter, an employee at JP Morgan, has been given
the task of handling the foreign exchange for a customer who is
moving from Switzerland to Brazil in one week. Which of the
following should Peter most likely use when exchanging the client's
Swiss francs for Brazilian reals?
false - answer Commercial banks look at foreign-exchange trading
as a service extended primarily to important customers, not as a
major business activity of its own.
, exchange rate - answer price of a currency
true - answer The three variables predicted by forecasting are the
timing, magnitude, and length of exchange rate movements.
chartist - answer Someone who uses past trends in exchange rates
themselves to spot future trends known as a ________.
speculators - answer Governments impose currency restrictions in
their countries to protect currencies from ________.
direction, magnitude - answer It is easier to predict the ________ of a
change than the ________ of a change in exchange rates.
black market - answer When people pay more for hard currency than
the official rate.
timing - answer Forecasters must predict the magnitude, direction,
and ________ of an exchange rate change or movement.
true - answer The value of the SDR is currently based on the
weighted value of 5 currencies.
convertible - answer Hard currencies are usually ________.
equity capital market - answer The stock market is also known as
the ________.
true - answer Double taxation occurs when corporation is taxed on
its earnings, while stockholders are taxed on the distribution of
earnings (dividends).
solved & updated
reporting dealers - answer financial institutions that actively
participate in local and global foreign-exchange markets
true - answer In foreign-exchange markets, reporting dealers trade
more foreign exchange with other reporting dealers than with any
other category of users.
exchange rate - answer The relationship between the value of the
Brazilian (Real) and the Chinese (Yuan) is known as the ________.
irrevocable line of credit - answer can be amended only if all parties
involved agree
confirmed letter of credit - answer A letter of credit that provides an
exporter with the guarantee of another bank in addition to the
importer's bank is called ________.
cross rate - answer Peter, an employee at JP Morgan, has been given
the task of handling the foreign exchange for a customer who is
moving from Switzerland to Brazil in one week. Which of the
following should Peter most likely use when exchanging the client's
Swiss francs for Brazilian reals?
false - answer Commercial banks look at foreign-exchange trading
as a service extended primarily to important customers, not as a
major business activity of its own.
, exchange rate - answer price of a currency
true - answer The three variables predicted by forecasting are the
timing, magnitude, and length of exchange rate movements.
chartist - answer Someone who uses past trends in exchange rates
themselves to spot future trends known as a ________.
speculators - answer Governments impose currency restrictions in
their countries to protect currencies from ________.
direction, magnitude - answer It is easier to predict the ________ of a
change than the ________ of a change in exchange rates.
black market - answer When people pay more for hard currency than
the official rate.
timing - answer Forecasters must predict the magnitude, direction,
and ________ of an exchange rate change or movement.
true - answer The value of the SDR is currently based on the
weighted value of 5 currencies.
convertible - answer Hard currencies are usually ________.
equity capital market - answer The stock market is also known as
the ________.
true - answer Double taxation occurs when corporation is taxed on
its earnings, while stockholders are taxed on the distribution of
earnings (dividends).
