The is an over-the-counter market with participants (buyers and sellers) located in major commercial and investment banks around the world. OA. purchasing power parity OB. exchange rate parity OC. interest rate market O D. foreign exchange market
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- A foreign currency loan is a typical example for O a. Currency Risk O b. Interest rate risk O c. Translation Exposure O d. Transaction ExposureTitle: Identification Things to do: 1. A second function of the foreign exchange market is to provide exchange possibility that unpredicted changes future exchange rates adverse consequences for the firm. insurance against risk, which is the in will have exchange rate is the rate foreign exchange dealer 2. The at which a converts currency into another one currency on a particular day. 3. The value of a is determined by the interaction between the demand and supply of that currency relative to the demand and supply of other currencies. 4. A parties agree exchange occurs to exchange currency when two and execute the deal at some specific date in the future. 5. rates governing such future transactions are referred to as forward exchange rates. 6. Changes in be problematic for an business. exchange rates can international 7. A is the simultaneous purchase and sale of a given amount of foreign exchange for two different value dates. 8. When a firm enters into a it is taking out possibility…Forex market is the global decentralize market for trading of currencies and determines the foreign exchange rates. You are required to critically examine the FIVE types of foreign exchange market participants and identify their motives for buying or selling foreign exchange.
- Identify under which one of the following market the issue of treasury bills lies: a.Equity Market b.Capital Market c.Foreign Currency Market d.Money Market **fast plzList and explain the seven functions performed by the money and capital market in the global economy. Distinguish between the ; a. Money market and capital market b. Open market and Negotiated market c. Primary market and secondary market d. Spot market and forward marketWhich one of the following is the rate that most international banks charge when they loan Eurodollars to other banks? A. ADR B. LIBOR C. Cross-rate D. Gilt rate E. Swap rate
- Broadly defined, the foreign exchange (FX) market encompasses: O a. Foreign trade financing. b. Trading in foreign currency options and futures contracts. O. The conversion of purchasing power from one currency into another. O d. All of the above.What is arbitrage? Indicate the forms of arbitrage that we can apply to the foreign exchange market.Exchange rate risk is a. The risk associated with the use of debt financing by companies b. The risk of doing business in a particular industry or environment c. The risk of loss due to imports and exports dominated in other currencies d. The uncertainty about the time element, the price concession, and the conversion to cash. ************************** correct answer please.
- 1. At any given time, the bank will purchase foreign exchange currency at what cost? a. market price b. client's selling price c. lower than the selling price 2. A bond call price amount is a. lower than par value b. higher than par value c. lower than discount valueWhat is the difference (term of investment) between Money Market, Bond Market, Equity Market, Foreign Exchange Market and Derivatives Market?Which of the following is/are TRUE with respect to spot market liquidity? I. The market liquidity improves if more buyers and sellers willing to participate in the currency trading. II. The spot markets for heavily traded currencies such as the Euro and Pound are very liquid. III. A currency's liquidity affects the ease with which an MNC can obtain or sell that currency. IV. If a currency is illiquid, an MNC is typically able to quickly purchase that currency at a reasonable exchange rate. A. I, II, III B. I, III, IV C. II, III, IV D. I, II
