Part 1 One-choice questions (4' for each 1. Please choose the quotation which is direct A in Germany USD = EUR1.4567 In US USD 1 - AUD1.1625 $14' for each question) on which is direct quotation Bin UK GBPUSD1.6752 Din France EURI USD 1.1752 expect to receive 50 pounds sterling at the end of 60 days. You can remove 2. Assume you are an American exporter and en e risk of loss due to a devaluation of the pound stering A Selling sterling in the forward market for 60-day delivery Buying sterling now and selling it at the end of 60 days for 60 day delivery sering the dollar equivalent in the forward market for 600 Keeping the sterling in Britain after it is delivered to you jor difference between the spot market and the forward market ma rward market is that the spot market deals with: B The merchandise trade account D Hedging of international currency risks A The immediate delivery of currencies C Currencies traded for future delivery apanese yen and the US dollar is 100 ven per dollar. A Japanese stereo with a 4. Suppose the exchange rate between the Japanese yen an price of 60,000 yen will cost: A USD 60 | B USD 600 CUSD 6,000 D Nonefeheh None of the above USD 6.000 refers to the price that a bank is willing to pay for a unit 5. In the interbank market for foreign exchange, the of foreign currency A offer rate B bid rate Cspread rate D transaction rate refers to the difference between the offer rate and the 6. In the interbank market for foreign exchange, the bid rate. A cross rate B option Carbitrage Dspread 7. If yesterday USD1 would buy 1 091 South Korean won, but today USD1 will only buy 1 070 won; the .. A dollar has appreciated in value. B dollar has depreciated in value. C demand for dollars in the foreign exchange market has increased relative to the supply of won. D Won price of dollars has gone up. 8. The collapse of the Bretton Woods system marked ). A the end of floating exchange rates and a move to feed exchange rates B the end of fixed exchange rates and a move to an eclectic currency arrangement Cthe beginning of the gold standard D the elimination of paper currencies A saver has USD10,000 saved and buys a USD10,000 General Motors (GM) bond maturing in te 0,000 General Motors (GM) bond maturing in ten years, paying an interest rate of 9.5 percent per annum. This transaction is an example of A indirect finance B direct finance Cnone of the above