TACN3 quizz1k

Bartering is based on the exchange of-------for goods.

• goods

• gold

• money

• service

The Bretton Woods Agreement stipulated that all members would express their

currencies in --------

• gold

• oil

• US dollar

• silver

When central banks intervene in the foreign exchange markets at the intervention

points, this is called the system of........…..exchange rates. The opposite is called the system of......….exchange rates.

• floating/fixed

• fixed/floating

• fixed/fixed

• floating/floating

If dealers buy currencies forward but do not sell forward simultaneously, their position is said to be------

• Long

• forward transaction

• Central banks

• Arbitraging

Dealers using two foreign exchange markets to benefit from rate differentials are said to engage in-------

• hedge

• Arbitraging

• Central banks

• forward transaction

.....................of the member countries were required to intervene in the foreign exchange markets to keep the value of their currencies within 1 percent of the par value.

• forward transaction

• outtright

• hedge

• Central banks

A...................means that delivery of a currency if specified to take place at a future date.

• forward transaction

• hedge

• premium

• outtright

Dealers, having concluded a forward contract, should always………….with an offsetting contract, so as not to leave the position open.

• premium

• hedge

• outtright

• discount

Forward rates can be quoted either ….....…. or in terms of a …....….. or …………..on the spot rate.

• premium/discount/outtright

• discount/outtright/premium

• outtright/premium/discount

• premium/outtright/discount

..............is the practice of transferring funds from one currency to another to benefit from rate differentials.

• Standard

• Revaluation

• Arbitrage

• Peg