The rate at which one currency is converted into another is known as the fluctuation rate.
IBI101 - Foreign Exchange Market

Quiz
•
Social Studies
•
University
•
Medium
Cao HN)
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15 questions
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1.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
True
False
2.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
When a tourist goes to a bank in a foreign country to convert money into the local
currency, the exchange rate used is the forward rate.
True
False
3.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
To minimize the risk of an unanticipated change in exchange rates, a company can
protect itself by entering into a forward exchange contract.
True
False
4.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
The _____ helps us to compare the relative prices of goods and services in different countries.
interest rate
exchange rate
GDP growth rate
tariff rate
5.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
The short-term movement of funds from one currency to another in the hopes of
profiting from shifts in exchange rates is known as:
currency speculation
currency arbitrage
currency hedge
currency risk mitigation
6.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
_____ are exchange rates governing some specific future date foreign exchange
transactions.
spot exchange rates
forward exchange rates
future exchange rates
currency swaps
7.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
The _____ states that in competitive markets free of transportation costs and barriers to trade, identical products sold in different countries must sell for the same price when their price is expressed in terms of the same currency.
rational price theory
model of fair pricing
principle of consistent price
law of one price
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