1. Direct quotation is known as ____________.

1. American Terms
2. European Terms
3. UK Terms
4. British Terms

2. Banks make profit from the spread between the buying and selling price that is known as ___________.

1. Bid-Ask price
2. Bid-Ask Spread
3. Cross-Rate
4. Price-Rate

3. A country that has government debt is less likely to acquire foreign capital and it will leads to the ______________.

1. Deflation
2. Inflation
3. Recession
4. Unemployment

4. The contracts with pricing derived from the spot rate is known as _______________.

1. Forward Market
2. Arbitrage
3. Derivatives Market
4. Spot Market

5. Forward rate is determined by adding the forward points to (if it is a forward premium) or deducting the forward points from (if it is a forward discount) the spot rate.

1. True
2. False

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