国际金融试题

1Copyright©2012PearsonEducation,Inc.FundamentalsofMultinationalFinance,4e(Moffett)Chapter6TheForeignExchangeMarketMultipleChoiceandTrue/FalseQuestions6.1GeographicalExtentoftheForeignExchangeMarket1)WhichofthefollowingisNOTtrueregardingthemarketforforeignexchange?A)Themarketprovidesthephysicalandinstitutionalstructurethroughwhichthemoneyofonecountryisexchangedforanother.B)Therateofexchangeisdeterminedinthemarket.C)Foreignexchangetransactionsarephysicallycompletedintheforeignexchangemarket.D)Alloftheabovearetrue.Answer:DDiff:1Topic:6.1GeographicalExtentoftheForeignExchangeMarketSkill:Recognition2)A/An________isanagreementbetweenabuyerandsellerthatafixedamountofonecurrencywillbedeliveredataspecifiedrateforsomeothercurrency.A)EurodollartransactionB)import/exportexchangeC)foreignexchangetransactionD)interbankmarkettransactionAnswer:CDiff:1Topic:6.1GeographicalExtentoftheForeignExchangeMarketSkill:Recognition3)Whiletradinginforeignexchangetakesplaceworldwide,themajorcurrencytradingcentersarelocatedinA)London,NewYork,andTokyo.B)NewYork,Zurich,andBahrain.C)Paris,Frankfurt,andLondon.D)LosAngeles,NewYork,andLondon.Answer:ADiff:1Topic:6.1GeographicalExtentoftheForeignExchangeMarketSkill:Recognition4)Becausethemarketforforeignexchangeisworldwide,thevolumeofforeignexchangecurrencytransactionsislevelthroughoutthe24-hourday.Answer:FALSEDiff:1Topic:6.1GeographicalExtentoftheForeignExchangeMarketSkill:Recognition2Copyright©2012PearsonEducation,Inc.5)WhichofthefollowingisNOTamotivationidentifiedbytheauthorsasafunctionoftheforeignexchangemarket?A)Thetransferofpurchasingpowerbetweencountries.B)Obtainingorprovidingcreditforinternationaltradetransactions.C)Minimizingtherisksofexchangeratechanges.D)Alloftheabovewereidentifiedasfunctionsoftheforeignexchangemarket.Answer:DDiff:1Topic:6.1GeographicalExtentoftheForeignExchangeMarketSkill:Recognition6)Thegreatestamountofforeignexchangetradingtakesplaceinthefollowingthreecities:A)NewYork,London,andTokyo.B)NewYork,Singapore,andZurich.C)London,Frankfurt,andParis.D)London,Tokyo,andZurich.Answer:ADiff:1Topic:6.1GeographicalExtentoftheForeignExchangeMarketSkill:Recognition6.2MarketParticipants1)Theauthorsidentifytwotiersofforeignexchangemarkets:A)bankandnonbankforeignexchange.B)commercialandinvestmenttransactions.C)interbankandclientmarkets.D)clientandretailmarket.Answer:CDiff:1Topic:6.2MarketParticipantsSkill:Recognition2)TheforeignexchangemarketisNOTefficientbecauseA)marketparticipantsdonotcompetewithoneanotherduetothefactthattradingtakesplacearoundtheworldandnotinasinglecentralizedlocation.B)dealershaveaskpricesthatarehigherthanbidprices.C)centralgovernmentsdominatetheforeignexchangemarketandeverybodyknowsthatbydefinition,centralgovernmentsareinefficient.D)noneofthereasonslistedareaccuratebecausetheforeignexchangemarketisefficient.Answer:DDiff:1Topic:6.2MarketParticipantsSkill:Conceptual3Copyright©2012PearsonEducation,Inc.3)Dealersinforeignexchangedepartmentsatlargeinternationalbanksactasmarketmakersandmaintaininventoriesofthesecuritiesinwhichtheyspecialize.Answer:TRUEDiff:1Topic:6.2MarketParticipantsSkill:Recognition4)Currencytradinglacksprofitabilityforlargecommercialandinvestmentbanksbutismaintainedasaserviceforcorporateandinstitutionalcustomers.Answer:FALSEDiff:1Topic:6.2MarketParticipantsSkill:Recognition5)ItischaracteristicofforeignexchangedealerstoA)bringbuyersandsellersofcurrenciestogetherbutnevertobuyandholdaninventoryofcurrencyforresale.B)actasmarketmakers,willingtobuyandsellthecurrenciesinwhichtheyspecialize.C)tradeonlywithclientsintheretailmarketandneveroperateinthewholesalemarketforforeignexchange.D)Alloftheabovearecharacteristicsofforeignexchangedealers.Answer:BDiff:1Topic:6.2MarketParticipantsSkill:Recognition6)Whichofthefollowingmaybeparticipantsintheforeignexchangemarkets?A)bankandnonbankforeignexchangedealersB)centralbanksandtreasuriesC)speculatorsandarbitragersD)Alloftheabove.Answer:DDiff:1Topic:6.2MarketParticipantsSkill:Recognition7)________seektoprofitfromtradinginthemarketitselfratherthanhavingtheforeignexchangetransactionbeingincidentaltotheexecutionofacommercialorinvestmenttransaction.A)SpeculatorsandarbitragersB)ForeignexchangebrokersC)CentralbanksD)TreasuriesAnswer:ADiff:1Topic:6.2MarketParticipantsSkill:Recognition4Copyright©2012PearsonEducation,Inc.8)Intheforeignexchangemarket,________seekalloftheirprofitfromexchangeratechangeswhile________seektoprofitfromsimultaneousexchangeratedifferencesindifferentmarkets.A)wholesalers;retailersB)centralbanks;treasuriesC)speculators;arbitragersD)dealers;brokersAnswer:CDiff:1Topic:6.2MarketParticipantsSkill:Recognition9)Foreignexchange________earnaprofitbyabid-askspreadoncurrenciestheypurchaseandsell.Foreignexchange________,ontheotherhand,earnaprofitbybringingtogetherbuyersandsellersofforeigncurrenciesandearningacommissiononeachsaleandpurchase.A)centralbanks;treasuriesB)dealers;brokersC)brokers;dealersD)speculators;arbitragersAnswer:BDiff:1Topic:6.2MarketParticipantsSkill:Recognition10)Theprimarymotiveofforeignexchangeacti