37-)

If the spot rate is JPY129.87/USD and the 6 month forward rate is JPY128.53/USD, then the 6-month yen is selling at a forward ________ of approximately ________ per annum.

Select one:

a. premium; 2.09%

b. premium; 2.06%

c. discount; 2.09%

d. discount; 2.06%

11-)

_______ is the active buying and selling of the domestic currency against foreign currencies.

Select one:

a. Foreign Direct Investment

b. Indirect Intervention

c. Federal Funding

d. Direct Intervention

12-)

Which one of the following management techniques is likely to best offset the risk of long-run exposure to receivables denominated in a particular foreign currency?

Select one:

a. Increase sales in this country.

b. Borrow money in the foreign currency in question.

c. Lend money in the foreign currency in question.

d. Increase sales to that country.

14-)

Since 2009 the IMF's exchange rate regime classification system uses a "de facto classification" methodology. Under this system, a country that has given up their own sovereignty over monetary policy is considered to have:

Select one:

a. hard pegs.

b. soft pegs.

c. a residual agreement.

d. floating arrangements.