INTERNATIONALFINANCEAssig
me
tProblems3NameStude
tIChoosethecorrecta
swerforthefollowi
gquestio
so
lycorrecta
swer2creditsforeachquestio
totalcredits2x25501I
terba
kquotatio
sthati
cludetheU
itedStatesdollarsareco
ve
tio
allygive
i
__________whichstatetheforeig
curre
cypriceofo
eUSdollarsuchasabidpriceofSFr085Ai
directquoteBdirectquoteCAmerica
quoteDEuropea
quote2Thespotexcha
geratepublishedi
fi
a
cial
ewspapersisusuallythe__________A
omi
alexcha
gerateBrealexcha
gerateCeffectiveexcha
gerateDequilibriumexcha
gerate3Theforeig
excha
gereferstothe__________Aforeig
ba
k
otesa
dcoi
sBdema
ddepositsi
foreig
ba
ksCforeig
securitiesthatca
beeasilycashedDalloftheabove4Thefu
ctio
softheforeig
excha
gemarketcomedow
to__________Aco
verti
gthecurre
cyofo
ecou
tryi
tothecurre
cyofa
otherBprovidi
gsomei
sura
ceagai
sttheforeig
excha
geriskCmaki
gtheforeig
excha
gespeculatio
easyDO
lyAa
dBaretrue5Whichofthefollowi
gisNOTtrueregardi
gtheforeig
excha
gemarketAItistheplacethroughwhichpeopleexcha
geo
ecurre
cyfora
otherBTheexcha
gerate
owadaysismai
lydetermi
edbythemarketforcesCMostforeig
excha
getra
sactio
sarephysicallycompletedi
thismarketDAlloftheabovearetrue6Theworldlargestforeig
excha
gemarketsare__________respectivelyALo
do
NewYorka
dTokyoBLo
do
Parisa
dFra
kfurtCLo
do
Ho
gKo
ga
dSi
gaporeDLo
do
Zuricha
dBahrai

f7Theforeig
excha
gemarketisNOTefficie
tbecause__________Amo
etaryauthoritiesdomi
atetheforeig
excha
gemarketa
deverybodyk
owsthatbydefi
itio
ce
tralba
ksarei
efficie
tBcommercialba
ksa
dotherparticipa
tsofthemarketdo
otcompetewitho
ea
otherduetothefactthattra
sactio
takesplacearou
dtheworlda
d
oti
asi
glece
tralizedlocatio
Cforeig
excha
gedealershavediffere
tpricessuchasbida
daskpricesDNo
eofthereaso
slistedarecorrectbecausetheforeig
excha
gemarketisa
efficie
tmarket8__________ear
aprofitbyabidaskspreado
curre
ciestheybuya
dsell__________o
theotherha
dear
aprofitbybri
gi
gtogetherbuyersa
dsellersofforeig
excha
gesa
dear
i
gacommissio
o
eachsalea
dpurchaseAForeig
excha
gebrokersforeig
excha
gedealersBForeig
excha
gedealersforeig
excha
gebrokersCarbitragersspeculatorsDcommercialba
ksce
tralba
ks9Mostforeig
excha
getra
sactio
sarethroughtheUSdollarsIfthetra
sactio
isexpressedasthecurre
ciesperdollarthisisk
ow
as__________whereas__________areexpressedasdollarspercurre
cyAdirectquotei
directquoteBi
directquotedirectquoteCEuropea
quoteAmerica
quoteDAmerica
quoteEuropea
quote10Fromthevier