IF week 2
Authored by rita j
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8 questions
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1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Assume that a bank's bid rate on Japanese yen is Rp 109 and its ask rate is Rp 112.5. Its bid/ask percentage spread is:
3.11%
3.2%
-3.11%
-3.2%
2.
MULTIPLE CHOICE QUESTION
10 sec • 1 pt
Which of the following is not a factor that affects the bid/ask spread?
interest rate risk
order cost
inventory cost
competition
3.
MULTIPLE CHOICE QUESTION
20 sec • 1 pt
If a U.S. firm is receiving 100,000 euros in 90 days and wishes to avoid the risk from exchange rate fluctuations, it could:
purchase a 90-day forward contract on euros
sell a 90-day forward contract on euros
purchase euros 90 days from now at the spot rate
sell euros 90 days from now at the spot rate
4.
MULTIPLE CHOICE QUESTION
10 sec • 1 pt
Which of the following is not true with respect to spot market liquidity?
The more willing buyers and sellers there are, the more liquid a market is
The spot markets for heavily traded currencies such as the Japanese yen are very liquid
A currency's liquidity affects the ease with which an MNC can obtain or sell that currency
If a currency is illiquid, an MNC is typically able to quickly purchase that currency at a reasonable exchange rate
5.
MULTIPLE CHOICE QUESTION
10 sec • 1 pt
The international money market primarily concentrates on:
short-term lending (one year or less)
medium-term lending
long-term lending
placing bonds with investors
6.
MULTIPLE CHOICE QUESTION
10 sec • 1 pt
if companies cannot rely on stock markets to obtain funds, they will have to rely more heavily on the ____ market to raise long-term funds.
Derivative
bond
money
foreign exchange
7.
MULTIPLE CHOICE QUESTION
5 sec • 1 pt
which one is the most risky market?
international money market
international bond market
international credit market
international stock market
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