Interest Rate Risk and Foreign Exchange Management

Spot market and futures market?

• Type of over-the-counter (OTC) market

• Is open 24 hours a day

• The world's largest and most dynamic financial market

• All answers

Characteristics of the foreign exchange market ar

• Foreign currency trading activities take place 24 hours

• Global in nature

• All answers

• Highly standardized

What is an arbitrageur?

• Not subject to exchange rate risk

• Can do business at any time

• Buy a currency at a low price and wait a while to resell it at higher price

• Both a and c are correct

Exception markets are

• Foreign exchange market

• FOREX

• FX

• All 3 are correct

Where is the foreign exchange market?

• Trading of shares and bonds denominated in foreign currencies

• Buying and selling of different currencies takes place

• Trading in precious metals

• Trading in foreign currency recording instruments

For forward currency purchases?

• Buy foreign currency in the future at the exchange rate determined today

• Sell foreign currency in the future at the rate determined today

• Perform calculations today for a future accepted foreign currency amount

• foreign currency with exchange rates maintained into the future

Foreign exchange transactions performed immediately will apply the _______ exchange rate?

• Forward rate

• Spot exchange rate

• Options contract exercise price

• The above sentences are correct

Organizational forms of the foreign exchange market include:

• Centralized foreign exchange market

• Decentralized foreign exchange market

• Gold, silver and gemstone market

• A&B

Foreign exchange rate is understood as:

• Comparative relationship of value of related currencies

• This currency unit represents the amount of another country's currency

• 1 unit of this currency is equivalent to 1 unit of another currency

• All answers

Activities of the international foreign exchange market include:

• Spot trading, currency futures trading, forward trading

• Currency futures trading

• Term transactions

• Spot trading