QUESTION 4 1. The largest and most active financial market in the world is A. the London Metal Exchange in London. B. the New York Stock Exchange in New York. C. the foreign exchange market. D. none of the above. QUESTION 5 1. The foreign exchange market closes A. Never. B. 4:00 p.m. (Tokyo time). C. 4:00 p.m. EST (New York time). D. 5:00 p.m. GMT (London time). QUESTION 6 1. What is the most commonly traded currency pair in the foreign exchange market? A. Euro and US dollar. B. Canadian dollar and USD dollar. C. Chinese yuan and USD dollar. D. Japanese yen and Euro. QUESTION 7 1. The current spot exchange rate of Euro is $1.30/. You enter into a short position (i.e., SELL) of 10,000 at the spot rate. Assume the Euro exchange rate turns out to be $1.29/ tomorrow. How much will you make or lose in the short position of Euro? A. Lost $100 B. Made $100 profit C. Lost $50 D. Made $50 profit