Fundamentals of Multinational Finance, 4e (Moffett)
Chapter 6 The Foreign Exchange Market
Multiple Choice and True/Fal Questions
6.1 Geographical Extent of the Foreign Exchange Market
1) Which of the following is NOT true regarding the market for foreign exchange?
A) The market provides the physical and institutional structure through which the money of one country is exchanged for another.
B) The rate of exchange is determined in the market.表格自动排序
C) Foreign exchange transactions are physically completed in the foreign exchange market.
D) All of the above are true.
Answer: D
自制小吃Diff: 1
Topic: 6.1 Geographical Extent of the Foreign Exchange Market
米的结构Skill: Recognition
2) A/An ________ is an agreement between a buyer and ller that a fixed amount of one currency will be delivered at a specified rate for some other currency.
A) Eurodollar transaction
B) import/export exchange
C) foreign exchange transaction
D) interbank market transaction
Answer: C
Diff: 1
Topic: 6.1 Geographical Extent of the Foreign Exchange Market
Skill: Recognition
3) While trading in foreign exchange takes place worldwide, the major currency trading centers are located in
A) London, New York, and Tokyo.
B) New York, Zurich, and Bahrain.
C) Paris, Frankfurt, and London.
D) Los Angeles, New York, and London.
Answer: A
Diff: 1
Topic: 6.1 Geographical Extent of the Foreign Exchange Market
Skill: Recognition
4) Becau the market for foreign exchange is worldwide, the volume of foreign exchange currency transactions is level throughout the 24-hour day.
Answer: FALSE
Diff: 1
Topic: 6.1 Geographical Extent of the Foreign Exchange Market
Skill: Recognition
5) Which of the following is NOT a motivation identified by the authors as a function of the foreign exchange market?
A) The transfer of purchasing power between countries.
B) Obtaining or providing credit for international trade transactions.
C) Minimizing the risks of exchange rate changes.
D) All of the above were identified as functions of the foreign exchange market.
Answer: D
Diff: 1
Topic: 6.1 Geographical Extent of the Foreign Exchange Market
Skill: Recognition
6) The greatest amount of foreign exchange trading takes place in the following three cities:
A) New York, London, and Tokyo.
B) New York, Singapore, and Zurich.
C) London, Frankfurt, and Paris.
D) London, Tokyo, and Zurich.
Answer: A
Diff: 1
Topic: 6.1 Geographical Extent of the Foreign Exchange Market
Skill: Recognition
6.2 Market Participants
1) The authors identify two tiers of foreign exchange markets:
A) bank and nonbank foreign exchange.
B) commercial and investment transactions.
C) interbank and client markets.
D) client and retail market.
美术社团简介Answer: C
Diff: 1
Topic: 6.2 Market Participants
Skill: Recognition
绿色的词语2) The foreign exchange market is NOT efficient becau
A) market participants do not compete with one another due to the fact that trading takes place around the world and not in a single centralized location.
B) dealers have ask prices that are higher than bid prices.
C) central governments dominate the foreign exchange market and everybody knows that by definition, central governments are inefficient.
D) none of the reasons listed are accurate becau the foreign exchange market is efficient.
营销方案范文Answer: D
Diff: 1
Topic: 6.2 Market Participants
壶口瀑布课文Skill: Conceptual
3) Dealers in foreign exchange departments at large international banks act as market makers and maintain inventories of the curities in which they specialize.
Answer: TRUE
Diff: 1
Topic: 6.2 Market Participants
Skill: Recognition
4) Currency trading lacks profitability for large commercial and investment banks but is m
aintained as a rvice for corporate and institutional customers.
Answer: FALSE
Diff: 1
Topic: 6.2 Market Participants
Skill: Recognition
5) It is characteristic of foreign exchange dealers to
A) bring buyers and llers of currencies together but never to buy and hold an inventory of currency for resale.
B) act as market makers, willing to buy and ll the currencies in which they specialize.
C) trade only with clients in the retail market and never operate in the wholesale market for foreign exchange.
D) All of the above are characteristics of foreign exchange dealers.
Answer: B
Diff: 1
海参可以Topic: 6.2 Market Participants
Skill: Recognition
6) Which of the following may be participants in the foreign exchange markets?
