Foreign Exchange Markets
The reasons for smaller exposure of foreign exchange than US money center are
regulations
prudent individuals
smaller size of assets
all of the above
all of the above
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The theory according to which the difference between expected appreciation and foreign interest must be equal to domestic interest rate, is calledA. interest rate parity theorem
B. appreciation parity theorem
C. domestic parity theorem
D. foreign interest parity theorem
For a foreign exchange of specific currency, the non-hedged position is classified as
A. open position
B. close position
C. currency long position
D. currency short position
In United States, the JPMorgan Chase is considered as
A. largest foreign exchange trading
B. smaller foreign exchange trading
C. largest bond holder
D. smaller bond holder
The position which came in to existence because of holding assets more than liabilities is considered as
A. net long in currency
B. net short in currency
C. net surplus in assets
D. net surplus in liabilities
In equilibrium position, the spread between foreign and domestic rate of interest must be equal to spread of
A. domestic rates
B. forward and spot exchange rates
C. forward rate
D. spot rates
The services such as commercial trade transactions and positions in financial investments provided by financial institutions are classified as
A. trade services
B. investment services
C. agent services
D. commercial services
The position which came in to existence because of holding assets less than liabilities is considered as
A. net surplus in assets
B. net surplus in liabilities
C. net long in currency
D. net short in currency
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