Which of the following is a direct quote from the U.S. perspective?
a. $1.60/Pound
b. E0.95/$
c. C$1.65/$
d. Y100/Euro
status: not answered ()
correct: a
your answer:
2
International diversification can increase risk-adjusted returns if countries' returns are not
perfectly positively correlated.
True
False
status: not answered ()
correct: true
your answer:
3
The Eurocurrency market consists mainly of loans and deposits, typically of $1 million or
more.
True
False
status: not answered ()
correct: true
your answer:
4
The bid-ask spread in the foreign exchange market is:
a. smaller for actively traded (major) currencies.
b. the compensation to banks for bearing risk.
c. the transactions cost for buying and selling currencies.
d. All of the answers are correct.
status: not answered ()

False
status: not answered ()
correct: false
your answer:
9
The foreign exchange market closes at:
a. 5 PM Eastern Standard Time.
b. 5 PM Greenwich Mean Time.
c. 5 PM in Tokyo.
d. never.
status: not answered ()
correct: d
your answer:
10
Because the U.S. capital markets are so large, American companies do not have to list
on foreign stock exchanges.
True
False
status: not answered ()
correct: false
your answer:
11
The center of worldwide foreign exchange trading is:
a. London.
b. New York.
c. Paris.
d. Tokyo.
status: not answered ()
correct: a
your answer:

status: not answered ()
correct: d
your answer:
16
A bank quotes the pound at $1.60-$1.65. The percent bid-ask spread is:
a. 3.125%.
b. 3.030%.
c. 5.000%.
d. None of the answers are correct.
status: not answered ()
correct: b
your answer:
17
You just received a gift from a friend consisting of 1,000 Thai baht, which you would
like to exchange for Australian dollars (A$). You observe that exchange rate quotes for
the baht are currently $.0230/TB - $0.0250/TB, while quotes for the Australian dollar
are $.5760/A$ - $.5820/A$. How many Australian dollars should you expect to receive
for your baht?
a. A$39.93
b. A$25,043.48
c. A$553.00
d. None of the answers are correct.
status: not answered ()
correct: a
your answer:
18
An indirect quote for Japanese yen is:
a. the number of yen per dollar.
b. the value of one yen in dollars.
c. a right, not an obligation, to exchange yen in the future.

gold.
True
False
status: not answered ()
correct: true
your answer:
23
Shares of non-U.S. firms that issue stock in the U.S. and list on the U.S. stock exchanges
are called American Depository Receipts.
True
False
status: not answered ()
correct: true
your answer:
24
A syndicate is:
a. a group of companies that join together to borrow money more cheaply.
b. a group of banks to underwrite loans.
c. a group of governments who join together to issue debt more cheaply.
d. None of the answers are correct.
status: not answered ()
correct: a
your answer:
25
The foreign exchange market trades somewhere 24 hours a day.
True
False
status: not answered ()
correct: true
your answer:

c. Arbitragers and speculators make riskless profits while hedgers do not.
d. Arbitragers make riskless profits while hedgers take positions to reduce risk.
status: not answered ()
correct: d
your answer:
30
Which of the following are provisions of the Single European Act?
a. Mobility of capital throughout Europe.
b.
A bank established in any one of the EU countries has the right to expand into any
or all of the other EU countries.
c.
Standardization of regulations regarding competition, mergers, and taxes
throughout Europe.
d. All of the answers are correct.
status: not answered ()
correct: d
your answer: