IBT QUIZ

In this market currencies to be exchanged is allowed in order to facilitate international trade or financial transactions

• Foreign exchange market

• Eurocurrency market

• Eurocredit market

They bring buyers and sellers together for a small commission thereby helping to preserve anonymity

• Arbitragers

• Hedgers

• Speculators

• Brokers

The price which a dealer will buy a currency

• Ask Price

• Bid Price

• Spot Price

Bonds that are sold in countries other than the country represented by the currency denominating them.

• Foreignbond Market

• Eurobond Market

• Eurocurrency Market

• Euro credit Market

Exports generate foreign cash inflows while imports require cash outflows.

• Direct foreign investment

• Short-term investment or financing

• Longer-term financing

• Foreign trade

The rate at which two parties agree to exchange currencies on a specified future date.

• Forward rate

• Forward premium rate

• Forward discount rate

• Forward exchange rate

They are primarily multinational corporations that enter into forward contracts to protect domestic currency value of foreign currency denominated asset and liabilities on their balance sheet

• Speculators

• Government

• Hedgers

• Arbitragers

A currency that specifies a standard volume of particular money to be exchanged on a specific settlement date.

• Currency futures contract

• Currency options contracts

• Foreign currency options contracts

• Foreign currency futures contract

It gives the right to buy or sell a specific currency at a specific price within a specific period of time.

• Foreign currency futures contract

• Currency futures contract

• Foreign currency options contracts

• Currency options contracts

Seek to earn riskless profit from price differences in different foreign exchange markets.

• Speculators

• Arbitragers

• Brokers

• Hedgers