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qestions (4' for each question 1. Please choose the quotation which is (are) direct quotationls). A In Germany USD1 EUR14567 C In US B In

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qestions (4' for each question 1. Please choose the quotation which is (are) direct quotationls). A In Germany USD1 EUR14567 C In US B In UK GBP1 USD1.6752 D In France EUR1-USD 1.1752 USD 1-AUD1.1625 2. Assume you are an American exporter and expect to receive S0 pounds sterling at the end of 60 days. You can remove the risk of loss due to a devaluation of the pound sterling by A Selling sterling in the forward market for 60-day delivery B Buying sterling now and selling it at the end of 60 days C Selling the dollar equivalent in the forward market for 60-day delivery D Keeping the sterling in Britain after it is delivered to you 3. A major difference between the spot market and the forward market is that the spot market deals with: A The immediate delivery of currencies C Currencies traded for future delivery B The merchandise trade account D Hedging of international currency risks 4. Suppose price of 60,000 yen will cost A USD 60 the exchange rate between the Japanese yen and the Us. dollar is 100 yen per dollar. A Japanese stereo with a B USD 600 C USD 6,000 D None of the above 5. In the interbank market for foreign exchange, the of foreign currency A offer rate refers to the price that a bank is willing to pay for a unit B bid rate C spread 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 C arbitrage D spread B option 7. If yesterday USD1 would buy 1 091 South Korean won, but today USD1 will only buy 1 070 won; the 8 dollar has depreciated in value. A dollar has appreciated 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. If an American has a commitment to pay a friend in Britain 1,000 pounds in 30 days, he could remove the risk of loss due to the appreciation of the pound by: A Buying dollars in the forward market for delivery in 30 days B Selling dollars in the forward market for delivery in 30 days C Buying the pounds in the forward market for delivery in 30 days D Selling the pounds in the forward market for delivery in 30 days 9. A saver has USD10,000 saved and buys a USD10,000 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

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