IDBI-FX-LU2-Exchange Rates-Part 2

In the case of arriving at Forward buying rate, the forward premium or discount for the appropriate forward rate will be..............

• excluded

• included

• only if premium included but if discount, excluded.

Difference between buying and selling rates in an exchange rate or interest rate quotation is known as....................... 

• Spot rate

• Strike price 

• Spread 

The exchange rate prevailing at a financial reporting date is....

• Closing exchange rate 

• Opening Exchange rate

• Fluctuating exchange rate

The price at which a market maker is prepared to sell a currency is.........

• bid rate 

•  offer rate

• forward rate 

_______________ is a process of taking advantage of differentials in interest rates of two currencies while eliminating exchange risk. 

• Insurance

• Hedging 

• Interest Arbitrage

The maxim 'buy low; sell high' is applicable for.......

• Quotation of USD/INR only

• Indirect quotation

• Direct quotation

In case of arriving at Forward Bill selling rate, exchange margin is added.........

• twice

• once

•  exchange margin ignored

While arriving at TT buying rate, exchange margin is to be........ to the spot............ rate.

• added/selling

• deducted/buying

• deducted/selling

The forward exchange rate __________. 

• is the rate today for exchanging one currency for another at a specific location on a specific future date 

•  is the rate today for exchanging one currency for another at a specific future date 

• is the rate today for exchanging one currency for another for immediate delivery 

The price at which a market maker is prepared to buy a currency is termed as .............

• Neutral

• Bid

• offer