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WorksheetsInternaltional Finance - Chapter 02 - B01E - Group 3
Total questions: 30
Worksheet time: 30mins
1. In what year did the Special Drawing Rights (SDRs) was set up ?
1959
1969
2005
1979
2. How many type(s) of exchange rate system there is/are ?
1
2
3
4
3. Is it true that the the Special Drawing Rights (SDRs) was set up to increse the value of USD in the international currency exchange ?
False
True
4. The purpose of the Special Drawing Rights (SDRs) is to give member countries an additional resource to maintain the exchange rate of home currency.
False
True
5. In which period of time the exchange rate was dictated by the gold standard ?
From 1914 to 1918
From 1876 to 1913
From 1939 to 1945
From 1803 to 1815
6. The cross rate refers to the exchange rate between two currencies, each of which has an exchange rate quote against a common currency is called ?
Stock market
Forward rate
Cross exchange rate
Interest rate
7. The international bank indicated the BID/ASK price for USD/JPY as following:
126.9790/ 126.9850. If you want to exchane 15000 USD to JPY, how much JPY will you have?
1.904.685 JPY
1.904.775 JPY
1.904.778 JPY
1.904.687 JPY
8. Because of the development of trade and international finance, large reserves of gold and dollars of the country became unable to meet the demmand so the Special Drawing Rights (SDRs) was born.
False
True
9. Maintaining a foreign currency account is helpful to
Avoid exchange risk
Avoid transaction cost
Avoid exchange risk and domestic currency depreciation
Avoid both transaction cost and exchange risk
10. The value of SDR is
Based on value of gold
Average of the value of US dollar and Euro
Based on basket of five currencies
Equivalent to one US dollar
11. The Special Drawing Right (SDR) is a(an) …… to the hard-currency reserves of other International Monetary Fund (IMF) members and certain other prescribed holders.
Special claim
Conditional claim
Unconditional claim
Some condition clam
12. Information of the exchange rate in the market as following:
CAD / RUB = 14,317 – 14,337
VND/ AUD = 16,379 – 16,399
SGD/VND = 16,836 – 16,856
CAD/ USD = 18,259 – 18,289
Caculating: USD/RUB = ?
1,2485- 1,2495
0,8539- 0,8559
1,2735 – 1,2774
0,7828 – 0,7852
13. According to Eurocredit market, how long does the loans denominated in home currency or other currencies expires?
7 years
3 years
5 years
9 years
14. I want to travel to Australia, I sell 9000 AUD to take RUB, how much I will get RUB?
AUD/USD = 19,677 – 19,687
RUB/USD = 18,951 – 18,971
1,03721
9334,93
8663,53
9551,97
15. SDRs was born to give member countries an additional resource to ...... the exchange rate of home currency
decrease
increase
maintain
support
16. Bank Services: How many important characteristics of bank foreign exchange services that MNCs should consider?
8
7
6
5
17. Is its true that there is no foreign exchange for countries that use the Euro when they engage in international trade among themselves?
Fale
True
18. Bid/ask Spread: CBA Bank’s bid price for Canadian dollars is $0.588 and its ask price is $0.75. What is the bid/ask percentage spread?
0.02 or 2%
0.2 or 20%
0.216 or 21.6%
0.03 or 3%
19. If the direct exchange rate of the euro is worth $2.5, what is the indirect rate of the euro? That is, what is the value of a dollar in euros?
0.2 euros
2 euros
4 euros
0.4 euros
20. A basket of currencies defines the SDRs included:
The US dollar, Euro, Chinese Yuan, Japanese Yen, and the Russian rupee.
The US dollar, Euro, Chinese Yuan, Canadian Dollar, and the Japanese Yen.
The US dollar, Euro, Chinese Yuan, Japanese Yen, and the British Pound.
The US dollar, Euro, Chinese Yuan, Japanese Yen, and the Australian Dollar.
21. Which of the answer is the first system used for exchanging foreign currencies?
Gold Standard
Bretton Woods Agreement
Smithsonian Agreement
Floating Exchange Rate System
22. Where does the immedate exchange take place?
Spot market
Bank
A and B are correct
A and B are not correct
23. How many attribute(s) do banks that provide foreign exchange have?
2
3
4
5
24. Which of the following is correct?
Competitiveness of quote is among attributes of banks providing foreign exchange.
Speed of execution does not belong to the attributes of banks providing foreign exchange.
Bid price is the price at which the seller buy foreign currency from the bank.
Ask price is always lover than bid price in any banks.
25. If the British Pound has the bid rate of $ 1.52 and the ask rate of &1.60, what is the percentage of the Bid/ask spread?
5%
6%
7%
8%
26. How many factors that affect the bid/ask spread ?
5
4
3
2
27. Factors affecting the bid/ask spread include:
Order cost, inventory cost, competition, volume, cureency risk.
Carrying cost, ordering cost, stock-out, currency risk, competition.
Order cost, inventory cost, competition, volume, quote competitivennes.
Bid price, ask price, spot market, intentory cost, order cost.
28. What is the difference between direct quotation and indirect quotation?
The indirect quotation can be calculated by mutiplying direct quotation with 2.
The indirect quotation can be calculated by the inverse of direct quotation.
The indirect quotation can be calculated by dividing direct quotation by 2.
The indirect quotation can be calculated by minusing direct quotation from direct quotation.
29. What is direct quotation?
Quotation that represents the value of a foreign currency in dollars.
Quotation that represents the value of a domestic currency in dollars.
Quotation that represents the value of a foreign currency in any currency.
Quotation that represents the value of a foreign currency in any valuable material.
30. What is indirect quotation?
Quotations that represents the number of units of a foreign currency per dollar.
Quotations that represents the number of units of a foreign currency in any currency.
Quotations that represents the number of units of a domestic currency per dollar.
Quotations that represents the number of units of a foreign currency per Canadian dollar.
