1. A characteristic of Exotic currencies is; a. hard to obtain b. are not exchangeable c. they are not liquid d. complicated tax issues e. often impedes controlling FX risk

2. What is a component of an interest rate collar? a. rate cap b. risk free rate c. rate floor d. a and c e. all of the above

3. A forward agreement is: a. a contract to deliver in the future at a price agreed to today b. an option to deliver in the future at a price agreed to today c. an agreement take delivery today at a price to be set later d. a standardized contract to deliver to an exchange in the future at a price agreed to today e. to exchange a set of cash flows at a future point in time.

4. A future agreement is: a. contract to deliver in the future at a price agreed to today b. an option to deliver in the future at a price agreed to today c. an agreement take delivery today at a price to be set later d. a standardized contract to deliver to an exchange in the future at a price agreed to today e. to exchange a set of cash flows at a future point in time.

5. A swap is: a. contract to deliver in the future at a price agreed to today b. an option to deliver in the future at a price agreed to today c. an agreement take delivery today at a price to be set later d. a standardized contract to deliver to an exchange in the future at a price agreed to today e. to exchange a set of cash flows at a future point in time.