CHAPTER 12
Basics of Foreign Exchange Markets
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Exhibit 12-1
Correct Alignment of Exchange Rate and Price
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Exhibit 12-2
Incorrect Alignment of Exchange Rate and Price
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Exhibit 12-3
Foreign Exchange Quotations
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Exhibit 12-4
Bid-Ask Quotes for Dollar per Ringgit and Ringgits
per Dollar
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Exhibit 12-5
Global Foreign Exchange Market Turnover*
Source: Bank for International Settlements, Monetary and Economic Department, Triennial Central Bank
Survey of Foreign Exchange and Derivatives Market Activity in April 2004: Preliminary Global Results,
September 2004, Table 1, p. 9. See (accessed October 13, 2006).
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Exhibit 12-6
Currency Distribution of Reported Foreign
Exchange Market Turnover
Source: Bank for International Settlements, Monetary and Economic Department, Triennial Central Bank
Survey of Foreign Exchange and Derivatives Market Activity in April 2004: Preliminary Global Results,
September 2004, Table 3, p. 11. See (accessed October 13, 2006).
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Exhibit 12-7
The Foreign Exchange Market
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Exhibit 12-8
Checking Accounts Never Leave the Country
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Exhibit M12-1
Balance Sheet Changes in U.S. and U.K. Banks Due
to the Creation of a Eurodollar Deposit
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Exhibit 12-9
Foreign Exchange Quotes
for Wednesday, January 18,
2006, and Thursday,
January 19, 2006, from the
January 20, 2006, edition of
The Wall Street Journal
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Exhibit 12-9
Continued
Source: International Monetary Fund.
a—Russian Central Bank rate, b—Government rate, d—Rebased as of Jan. 1, 2005.
y—Floating rate
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Exhibit 12-10
Swiss Franc–U.S. Dollar Spot and Forward Rates
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Exhibit 12-11
Japanese Yen–U.S. Dollar Spot and Forward Rates
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Exhibit 12-12
U.K. Pound–U.S. Dollar Spot and Forward Rates
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Exhibit 12-13
Swiss Franc–U.S. Dollar Spot and Forward Rates
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Exhibit A12-1
Differences between the Forward and Futures Markets
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Exhibit A12-2
Global Over-the-Counter Options Turnover
Source: Bank for International Settlements, Monetary and Economic Department, Triennial Central
Bank Survey of Foreign Exchange and Derivatives Market Activity in April 2004: Preliminary Global Results,
September 2004, Table 6, ‘‘Global OTC Derivatives Market Turnover by Instrument,’’ p. 14. See
(accessed October 13, 2006).
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