ITB 305 WEEK 6 QUIZ NEW
ITB 305
Week 6 Quiz New
1. Which
is NOT one of the primary types of foreign exchange transactions?
2. ____
allow participants to buy and sell currencies now for future delivery.
3. The
____ is defined as the difference between the offered price and the bid price.
4. Which
of the following is NOT one of the components of the balance of payments?
5. If
central bankers raise interest rates to curb inflation, they risk driving
currency ____. If their interventions in the foreign exchange market drive the
currency ____, they may boost inflation.
6. What
was one of the major reasons the gold standard fell apart?
7. Which
of the following is best defined by "the conversion of one currency into
another at Time 1, with an agreement to revert it back to the original currency
at a specific Time 2 in the future"?
8.
Traders and investors trading in a forward transactions market are most
concerned about:
9. Which
of the following is most focused on currency diversification?
10. What
is the "law of one price," where the price for identical products in
different countries should be the same if trade barriers are absent?
11. A
country experiencing a current account surplus will see its currency ____,
while a country experiencing a current account deficit will see its currency
____.
12. In
the trade relationship with China, why is the US dollar in more demand than the
Chinese yuan?
13. Which
of the following is NOT one of the three primary activities of the
International Monetary Fund?
14. If a
country's interest rate is high relative to other countries, the country will:
15. Where
does the International Monetary Fund receive its funds?
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