Foreign Exchange Mcqs for Economics


Q.  The difference between bid (buying) rates and ask (selling) rates is called the ?

a. profit
b. arbitrage
c. spread
d. forward transaction


ANSWER: See Answer
 
No explanation is available for this question!
MCQs:  If Sweden’s currency depreciates relative to Norway’s currency ?
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MCQs:  The franc is said to be selling at a _______ if the spot dollar price is $0.48 and the nine-month forward rate is $0.42 ?
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MCQs:  Riskless transactions to take advantage of profit opportunities due to a price differential or a yield differential in excess of transaction costs are called ?
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MCQs:  If the bank is selling francs for $0.45, then what is the implied franc price of the dollar ?
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MCQs:  An important feature of a _______ is that the holder has the right but not the obligation to buy or sell currency ?
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MCQs:  The exchange rate is kept the same across geographically separate markets by ?
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MCQs:  In a supply and demand diagram for Japanese yen, with the exchange rate in dollars per yen on the vertical axis, the demand schedule for yen is drawn sloping ?
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MCQs:  The largest volume of foreign exchange trading takes place in ?
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MCQs:  During the era of dollar appreciation from 1981 to 1985 a main reason why the dollar did not fall in value was ?
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MCQs:  Under a system of floating exchange rates the pound would depreciate in value if there occurs ?
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MCQs:  Suppose that a Swiss television set that costs 400 francs in Switzerland cost $200 in the United States. The exchange rate between the franc and the dollar is ?
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MCQs:  The most widely traded currency in the foreign exchange market is the ?
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MCQs:  Assume that a Big Mac hamburger cost $3 in the United States 2 pesos in Mexico The implied purchasing power parity exchange rate between the peso and the dollar is ?
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MCQs:  Due to Japan’s high saving rate, suppose that the Japanese invest abroad. This investment may result in a/an _______ of the Japanese yen and therefore a for Japan?
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MCQs:  Assume identical interest rates on comparable securities in the United States and foreign countries. Suppose investors anticipate that in the future the U.S dollar will depreciate against foreign currencies. investment funds would tend to ?
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MCQs:  Starting from a position where the nation’s money demand equals the money supply and its balance of payments is in equilibrium its balance of payments would move into a surplus position if there occurred in the nation a (an) ?
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MCQs:  Which example of market expectations causes the dollar to appreciate against the yen– expectations that the U.S economy will have ?
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MCQs:  Given a system of floating exchange rates falling income in the United States would trigger a (an) ?
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MCQs:  For the United States suppose the annual interest rate on government securities equals 12 percent while the annual inflation rate equals 8 percent For Japan the annual interest rate on government securities equals 10 percent while the annual inflation rate equals 5 percent the above variables would cause investment funds to flow from ?
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MCQs:  If Japan runs current account deficit and exchange rates are floating?
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