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Question 1;If the spot rate for Swiss francs is $0.6658/franc and the 180-day forward rate is $0.6637, the market is indicating that the Swiss franc is expected to;a. strengthen relative to the dollar;b. weaken relative to the ECU;c. lose value relative to the dollar over the next 6 months;d. gain value relative to the dollar over the next 6 months;0.4 points;Question 2;The barriers to the free flow of capital among the major world capital markets include all of the following except;a. low transaction costs;b. taxation policies;c. foreign exchange risks;d. legal restrictions;0.4 points;Question 3;An exchange rate quoted as $1.47 per British pound is known as a ____ quote.;a. Hedge;b. Direct;c. Futures;d. Indirect;0.4 points;Question 4;Although there was a financial crisis in 2007-2010, some firms were able to weather the crisis. These firms had all of the following characteristics which were directly responsible for their ability to survive the crisis EXCEPT;a. Tight control over fixed and variable costs;b. Low business risk;c. A business model which encouraged risk taking by management that paid off;d. Low product pricing;0.4 points;Question 5;The difference between the bid price and the ask price on a security is the;a. spread;b. value;c. asset factor;d. commission;0.4 points;Question 6;The U.S. financial markets are said to be highly informationally efficient. This means;a. they process stock trades accurately and quickly;b. the market provides quick access to a firm's financial statements;c. they quickly reflect information relevant to determining stock value;d. accurate stock quotes are quickly available to all investors;0.4 points;Question 7;Money markets deal in securities having maturities of ____, capital market securities have maturities ____.;a. less than 18 months, greater than 18 months;b. one year or less, greater than one year;c. less than 9 months, greater than 9 months;d. less than 6 months, greater than 6 months;0.4 points;Question 8;Commercial banks are an important source of;a. mortgage loans;b. equity loans;c. real estate loans;d. short-term loans and term loans;0.4 points;Question 9;The main purpose of an economy's financial system is to facilitate the transfer of funds from;a. financial middlemen to financial intermediaries;b. surplus spending units to deficit spending units;c. primary claimholders to secondary claimholders;d. lenders to financial intermediaries;0.4 points;Question 10;Insider trading is defined as;a. an individual using proper trading rules;b. an individual buying or selling using non-SEC disclosure rules;c. an individual buying or selling on the basis of material nonpublic information;d. a zero-plus game;0.4 points;Question 11;If the exchange rate from U.S. dollars to Canadian dollars is $0.80/Canadian dollar, then the exchange rate from Canadian dollars to U.S. dollars is


Paper#70646 | Written in 18-Jul-2015

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