FIXED INCOME FOREIGN EXCHANGE A3

Which of the following methods should a company use to improve (lower) its debt to equity ratio?

• Buy common stock

• Shift long-term debt to short term debt

• Borrow more

• Shift short-term debt to long-term debt

Capital Structure refers to which of the following options

• Current assets and current liabilities

• Shareholders equity

• Long term debt, preferred stock and common stock options

• None of these

To get a broad idea of the risk profile of a business, one should look at their ________

• Capital structure

• Dividend policy

• Profit and loss statement

• None of these

Which of the following options is an example of marketable securities?

• Long-term equity securities

• Long-term debt instruments

• Short-term debt instruments

• Short-term equity securities

What is an exchange rate?

• The rate at which goods are exchanged between two countries

• The price of one nation's currency in terms of another's

• How many US dollars you can exchange for RMB at Travelex

• The price of goods in terms of a foreign currency

If a country experiences a ______ in productivity relative to other countries, its country will ______ because the cost of producing goods _______

• Rise, appreciate, increases

• rise, depreciate, decreases

• decline, depreciate, increases

• decline, depreciate, decreases

The price at which a bond gets traded at a stock exchange is known as

• Maturity Value

• Market Value

• Face Value

• Redemption Value

The net potential gain or loss likely to arise from exchange

• Exchange Exposure

• Exchange Risk

• Profit/ Loss on foreign exchange

• Exchange Difference

A transaction in which the currencies to be exchanged the next day of the transaction is known as

• Ready Transaction

• Value Today

• Spot Transaction

• Value Tomorrow

Which of these is not a part of Capital Structure

• Equity Shares

• Debentures

• Short-term borrowings

• Bonds