Unit 5 ESP231

Front

1. The market in which currencies are bought and sold and in which currency prices are determined is called the ________

Back

Foreign exchange market

Front

The practice of Insuring against potential losses that result from adverse changes in exchange rates is called ________

Back

Currency hedging

Front

_________ is the instantaneous purchase and sale of a currency in different markets for profit.

Back

Currency arbitrage

Front

______ is the purchase or sale of a currency with the expectation that its value will change and generate a profit.

Back

Currency speculation

Front

1. In a quoted exchange rate, the currency with which another currency is to be purchased is called the _________

Back

Quoted currency

Front

In a quoted exchange rate, the currency that is to be purchased with another currency is called the __________

Back

Base currency

Front

1. The exchange rate requiring delivery of the traded currency within two business days is called the ________

Back

Spot rate

Front

1. The exchange rate at which two parties agree to exchange currencies on a specified future date is called the _________

Back

Forward rate

Front

1. __________ is a contract requiring the exchange of an agreed-upon amount of a currency on an agreed-upon date at a specific exchange rate.

Back

Forward contract

Front

A______ is the simultaneous purchase and sale of foreign exchange for two different dates.

Back

Currency swap