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strayer university ITB400 QUIZ 2

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Question;?;Over the last several years the U.S. has run;persistent;Answer;?;Question 2;3 out of 3 points;Generally speaking, any transaction that results;in a payment to foreigners;Answer;?;Question 3;3 out of 3 points;Invisible trade refers to;Answer;?;Question 4;3 out of 3 points;The current account balance, which is the;difference between a country's exports and imports, is a component of the;country's GNP. Other components of GNP include;Answer;?;Question 5;3 out of 3 points;The balance of payments identity is given by BCA;+ BKA + BRA = 0. Rearrange the identity for a country with a pure flexible;exchange rate regime.;Answer;?;Question 6;0 out of 3 points;Under the pure flexible exchange rate regime;Answer;?;Question 7;3 out of 3 points;The world's largest debtor nation and creditor;nation, respectively, are;Answer;?;Question 8;3 out of 3 points;More important than the absolute size of a;country's balance-of-payments disequilibrium;Answer;?;Question 9;3 out of 3 points;As of 2007 gold accounting for;Answer;?;Question 10;3 out of 3 points;BCA stands for;Answer;?;Question 11;3 out of 3 points;In a pure flexible exchange rate regime, a;country's central banks will not need to maintain official reserves. Under;this regime;Answer;?;Question 12;3 out of 3 points;The capital account may be divided into three;categories;Answer;?;Question 13;3 out of 3 points;Suppose the McDonalds Corporation imports;Canadian beef, paying for it by transferring the funds to a New York bank;account kept by the Canadian Beef producer.;Answer;?;Question 14;3 out of 3 points;BKA stands for;Answer;?;Question 15;3 out of 3 points;Which of the following is most indicative of the;pressure that a country's currency faces for depreciation or appreciation?;Answer;?;Question 16;3 out of 3 points;The current exchange rate is ?1.00 = $1.50.;Compute the correct balances in Bank A's correspondent account(s) with bank B;if a currency trader employed at Bank A buys ?100,000 from a currency trader;at bank B for $150,000 using its correspondent relationship with Bank B.;Answer;?;Question 17;3 out of 3 points;At the wholesale level;Answer;?;Question 18;3 out of 3 points;Suppose a bank customer with ?1,000,000 wishes to;trade out of euro and into Japanese yen. The dollar-euro exchange rate is;quoted as $1.60 = ?1.00 and the dollar-yen exchange rate is quoted at $1.00 =;?120. How many yen will the customer get?;Answer;?;Question 19;0 out of 3 points;Suppose you observe the following exchange rates;?1 = $1.50, ?120 = $1.00. Calculate the euro-pound exchange rate.;Answer;?;Question 20;0 out of 3 points;The world's largest foreign exchange trading;center is;Answer;?;Question 21;3 out of 3 points;It is common practice among currency traders;worldwide to both price and trade currencies against the U.S. dollar. In;fact, 2007 BIS statistics indicate that about _________ of currency trading;in the world involves the U.S. dollar on one side of the transaction.;Answer;?;Question 22;3 out of 3 points;The Bid price;Answer;?;Question 23;3 out of 3 points;A recent survey of U.S. foreign exchange traders;measured traders' perceptions about how fast news events that cause movements;in exchange rates actually change the exchange rate. The survey respondents;claim that the bulk of the adjustment to economic announcements regarding;unemployment, trade deficits, inflation, GDP, and the Federal funds rate;takes place within;Answer;?;Question 24;3 out of 3 points;It is common practice among currency traders;worldwide to both price and trade currencies against the U.S. dollar.;Consider a currency dealer who makes a market in 5 currencies against the;dollar. If he were to supply quotes for each currency in terms of all of the;others, how many quotes would he have to provide?;Answer;?;Question 25;3 out of 3 points;When a currency trades at a discount in;the forward market;Answer;?;Question 26;3 out of 3 points;Suppose you observe the following exchange rates;?1 = $1.50, ?1 = $2.00. Calculate the euro-pound exchange rate.;Answer;?;Question 27;3 out of 3 points;Most interbank trades are;Answer;?;Question 28;3 out of 3 points;Suppose you observe the following exchange rates;?1 = $1.60, ?1 = $2.00. Calculate the euro-pound exchange rate.;Answer;?;Question 29;3 out of 3 points;When a currency trades at a premium in;the forward market;Answer;?;Question 30;3 out of 3 points;The AUD/$ spot exchange rate is AUD1.60/$ and the;SF/$ is SF1.25/$. The AUD/SF cross exchange rate is _____.;Answer

 

Paper#46425 | Written in 18-Jul-2015

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