Terms in this set (42)
the price of a currency is known as which of the following?
a central banking institution the market into three major categories: reporting dealers, financial institutions and nonfinancial institutions. which of the following is a central banking institution?
bank for international settlements (BIS)
when mexican immigrant workers exchange dollars for pesos, which of the following approaches to trade is taking place?
an FX swap is which one of the following?
simultaneous spot and forward transaction.
which of the following is NOT key foreign exchange term
which of following describes a sight draft?
requires payment to made when it is process.
which of the following describes a letter of credit?
obligates the buyers bank to honor a draft presented to its and assume payment.
the exchange rate quoted for transaction that require delivery within two day is known as ?
though the dollar is more popular in most emerging markets, which of the following is another currency that is in four of the top ten currency pairs?
which of the following is NOT an instrument of the global over the counter market (OTC) foreign exchange?
all of the following except ____ are considered global over the counter market (OTC) foreign exchange instrument?
the difference between the bid and the offer rates is known as which of the following?
a company works with an exchange broker instead of a financial institution in order to purchase contracts that specify an exchange rate in advance. this scenario demonstrates the purchasing of which type of contract?
which of the following is NOT part of the spot market?
dealers CAN NOT trade foreign exchange through which of the following?
through government commerce department.
speculators take a position in foreign exchange markets to do which of the following?
make a profit
forwards, swaps, futures and options are also known as which of the following?
which of the following is NOT a criterion for selecting a top foreign exchange dealer?
capable of handing domestic currency
which of the following services do Reuters, EBS, and Bloomberg NOT provide to customers?
the biggest foreign exchange market is which one of the following?
major banks in the interbank market are NOT ranked because of their ability to do which of the following?
control foreign exchange rates in the interbank market.
the investing in debt instrument such as bonds in different counties is known as which one of the following?
a dealer turn $100 into $125 by selling the currency for other currency and back again. this scenario best illustrates which of the following?
which of the following is most likely to be a group founded to trade a variety of futures contracts and options?
which of the following platforms is most often used to trade euro/dollar futures and options?
which of the following is an example of a time draft?
payment made at a later time.
which is done with a draft or commercial bill of exchange?
one party directs another party to make payment.
money denominated in the currency of another nation or group of nations is known as which of the following?
companies most often use two or more currencies in which type of transactions?
the number of dollars per unit of foreign currency is known as which of the following?
all of the following EXCEPT ____ are considered major exchanges that deal in foreign currency?
why do companies enter the foreign exchange market?
to facilitate regular business transactions
which of the following requires payment to be made when it is presented?
what is the agreed upon rate of delivery of currency when the delivery of the currency takes place within two days?
which of the following is NOT considered a reason why US dollar is so widely trade?
it is the single most traded currency on the London exchange
the number of units of foreign currency per dollar is known as which of the following?
when currency dealers quote currencies, how is the currency quoted?
using base and term currencies.
the capability of handling derivatives illustrates criteria for selecting which of the following?
top foreign exchange dealers
the exchange group that formed as the result of a merger between the Chicago Mercantile Exchange and the Chicago Board of the Trade is known as which of the following?
which of the following is the purchase of foreign currency of one market for immediate resale on another market in another country?
which of the following permits payment to be made after the date when it is presented?
an importer is not able to make a payment to the exporter at the agreed upon time. this illustrates the need for which of the following?
letter of credit