chuong 3 quiz Thị trường tài chính và các định chế tài chính Madura

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 ()

correct: d
your answer:
5
The Bretton Woods agreement was a system of fixed exchange rates, though not a Gold
Standard.
True
False
status: not answered ()
correct: true
your answer:
6
The Eurocurrency market is the market for the Euro.
True
False
status: not answered ()
correct: false
your answer:
7
A company needs to buy E10 million. The quote is E0.950/$-0.980/$. How much does it
cost the company to buy the Euros?
a. $9,800,000
b. $10,526,316
c. $10,204,082
d. None of the answers are correct.
status: not answered ()
correct: c
your answer:
8
There is a fully integrated world stock market.
True

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:

12
The Eurocurrency market primarily concentrates on:
a. long-term lending in Euros to borrowers outside of the EU.
b. short-term lending (one year or less) in any currency outside the country of issue.
c. medium-term lending of dollars in Europe.
d. placing bonds with investors in Japan.
status: not answered ()
correct: b
your answer:
13
A cross-rate is an exchange rate where neither currency is the dollar.
True
False
status: not answered ()
correct: true
your answer:
14
The bid-ask spread represents compensation to the market maker for making the market
in foreign exchange.
True
False
status: not answered ()
correct: true
your answer:
15
Which of the following are characteristics of most Eurobonds?
a. call provisions
b. bearer form
c. few restrictive covenants
d. All of the answers are correct.

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.

d. the rate set today to trade yen in the future.
status: not answered ()
correct: a
your answer:
19
Only private companies, not governments, borrow in the Eurobond market.
True
False
status: not answered ()
correct: false
your answer:
20
The spot foreign exchange market is composed of:
a. interbank dealers.
b. foreign exchange brokers.
c. electronic matching systems.
d. All of the answers are correct.
status: not answered ()
correct: d
your answer:
21
Euros are the currency of denomination for the majority of bonds in the Eurobond
market.
True
False
status: not answered ()
correct: false
your answer:
22
Exchange rates in the Gold Standard were set through the value of currencies in terms of

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:

26
Average daily worldwide trading of currencies is:
a. $100 billion.
b. $500 billion.
c. $1 trillion.
d. $1.5 trillion.
status: not answered ()
correct: d
your answer:
27
The Eurocurrency market is primarily used by multinational firms for hedging long-term
business contracts.
True
False
status: not answered ()
correct: false
your answer:
28
Most exchange rates are quoted in direct terms from the U.S. perspective.
True
False
status: not answered ()
correct: false
your answer:
29
Which of the following statements are true?
a. Speculators and arbitragers take risk to make a profit while hedgers do not.
b.
Hedgers and speculators take positions only to make a profit while arbitragers do
not.

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: