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Which of the following statements best defines a foreign bond? Question 1 Answer a . A bond issued in the currency of the country where
Which of the following statements best defines a foreign bond? Question Answer a A bond issued in the currency of the country where the bond is issued and issued by a company domiciled in the country of issue. b A bond issued in the currency of the country where the bond is issued, but issued by a company domiciled outside of the country of issue. C A bond issued in a currency other than the currency of the country where the bond is issued, and issued by a company domiciled in the country of issue. d A bond issued in a currency other than the currency of the country where the bond is issued, and issued by a company domiciled outside of the country of issue. QUESTION All countries have a threecharacter currency code. The currency code is derived as follows: the first two letters are from the countrys country code. The third letter is from the countrys currency. Based on this, which country is the following currency code from: BRL a Country is Bahrain; currency is Dinar b Country is Botswana; currency is Pula c Country is Brazil; currency is real d Country is Belgium; currency is Euro QUESTION You are provided with the following quote: EURCHF If you have Swiss Francs CHF how many Euros EUR can you purchase? a EUR b EUR c EUR d EUR QUESTION Which of the following currencies are considered to be the Queens currencies and thus will be used as the base currency in any quotation, other than against the Euro? Question Answer a GBP AUD, NZD CAD, JMD b GBP AUD, NZD CAD, BZD c GBP AUD, NZD CAD d GBP AUD, NZD QUESTION You are a resident of Canada and are provided with the following quote: GBPCAD Is this considered a Direct Quote or an Indirect Quote? Question Answer a Indirect Quote the domestic currency is the base currency b Direct Quote the domestic currency is the quote currency c Direct Quote the domestic currency is the base currency d Indirect Quote the domestic currency is the quote currency QUESTION You are provided with the following quote: USDCAD You want to BUY USD from the dealer. How much will you pay in CAD? Question Answer a CAD b CAD c CAD d CAD Question In the question above, how many PIPS or POINTS are there in the spread? The spread is the profit earned by the dealer and is equal to difference between the rates at which the dealer will buy and sell CAD Given your answer to the first part of the question, how much profit does the dealer make from selling USD Question Answer a CAD b CAD c CAD d CAD QUESTION You observe the following two quotations: USDCAD USDTHB Based on the above quotes, what exchange rate would you expect for CADTHB computed using a cross rate? Question Answer a CADTHB b CADTHB c CADTHB d CADTHB Question Question text Continue with the information provided in Question # above. Assume that you also observe a quoted exchange rate of CADTHB You have $ CAD to invest. What is your potential profit from arbitrage? Question Answer a $ b $ c $ d $ QUESTION You observe the following quotations: Spot: GBPCAD Month Forward: GBPCAD Are GBP selling at a forward premium or a forward discount? What is the annualized forward premium or discount for GBP a GBP is selling at a Forward Premium of b GBP is selling at a Forward Premium of c GBP is selling at a Forward Discount of d GBP is selling at a Forward Discount of Question Answer you observe the following two quotations: usdcad usdthb based on the above quotes, what exchange rate would you expect for cadthb computed using a cross rate? a Exchange rate is expected to be CADCHF b Exchange rate is expected to be CADCHF c Exchange rate is expected to be CADCHF d Exchange rate is expected to be CADCHF a
Which of the following statements best defines a foreign bond?
Question Answer
a
A bond issued in the currency of the country where the bond is issued and issued by a company domiciled in the country of issue.
b
A bond issued in the currency of the country where the bond is issued, but issued by a company domiciled outside of the country of issue.
C
A bond issued in a currency other than the currency of the country where the bond is issued, and issued by a company domiciled in the country of issue.
d
A bond issued in a currency other than the currency of the country where the bond is issued, and issued by a company domiciled outside of the country of issue.
QUESTION
All countries have a threecharacter currency code. The currency code is derived as follows: the first two letters are from the countrys country code. The third letter is from the countrys currency. Based on this, which country is the following currency code from: BRL
a
Country is Bahrain; currency is Dinar
b
Country is Botswana; currency is Pula
c
Country is Brazil; currency is real
d
Country is Belgium; currency is Euro
QUESTION
You are provided with the following quote: EURCHF
If you have Swiss Francs CHF how many Euros EUR can you purchase?
a
EUR
b
EUR
c
EUR
d
EUR
QUESTION
Which of the following currencies are considered to be the Queens currencies and thus will be used as the base currency in any quotation, other than against the Euro?
Question Answer
a
GBP AUD, NZD CAD, JMD
b
GBP AUD, NZD CAD, BZD
c
GBP AUD, NZD CAD
d
GBP AUD, NZD
QUESTION
You are a resident of Canada and are provided with the following quote: GBPCAD
Is this considered a Direct Quote or an Indirect Quote?
Question Answer
a
Indirect Quote the domestic currency is the base currency
b
Direct Quote the domestic currency is the quote currency
c
Direct Quote the domestic currency is the base currency
d
Indirect Quote the domestic currency is the quote currency
QUESTION
You are provided with the following quote: USDCAD You want to BUY USD from the dealer. How much will you pay in CAD?
Question Answer
a
CAD
b
CAD
c
CAD
d
CAD
Question
In the question above, how many PIPS or POINTS are there in the spread? The spread is the profit earned by the dealer and is equal to difference between the rates at which the dealer will buy and sell CAD Given your answer to the first part of the question, how much profit does the dealer make from selling USD
Question Answer
a
CAD
b
CAD
c
CAD
d
CAD
QUESTION
You observe the following two quotations:
USDCAD
USDTHB
Based on the above quotes, what exchange rate would you expect for CADTHB computed using a cross rate?
Question Answer
a
CADTHB
b
CADTHB
c
CADTHB
d
CADTHB
Question
Question text
Continue with the information provided in Question # above. Assume that you also observe a quoted exchange rate of CADTHB You have $ CAD to invest. What is your potential profit from arbitrage?
Question Answer
a
$
b
$
c
$
d
$
QUESTION
You observe the following quotations:
Spot: GBPCAD
Month Forward: GBPCAD
Are GBP selling at a forward premium or a forward discount? What is the annualized forward premium or discount for GBP
a
GBP is selling at a Forward Premium of
b
GBP is selling at a Forward Premium of
c
GBP is selling at a Forward Discount of
d
GBP is selling at a Forward Discount of
Question Answer
you observe the following two quotations: usdcad usdthb based on the above quotes, what exchange rate would you expect for cadthb computed using a cross rate?
a
Exchange rate is expected to be CADCHF
b
Exchange rate is expected to be CADCHF
c
Exchange rate is expected to be CADCHF
d
Exchange rate is expected to be CADCHF
a
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