Corporate Finance Study Set 2

A security issued in the United States that represents shares of a foreign stock and allows that stock to be traded in the United States is called a(n):

The implicit exchange rate between two currencies when both are quoted in some third currency is called a(n):

International bonds issued in multiple countries but denominated in a single currency are called:

Money deposited in a financial center outside the country whose currency is involved is called:

International bonds issued in a single country and denominated in that country's currency are called:

A foreign bond issued in the United States and denominated in dollars is called a(n):

A foreign bond issued in Japan and denominated in yen is called a(n):

Gilts are government securities issued by:

The rate most international banks charge one another for overnight Eurodollar loans is called the:

The foreign exchange market is where:

The price of one country's currency expressed in terms of another country's currency is:

An agreement to trade currencies based on the exchange rate today for settlement within two business days is called a(n)_____ trade.

The exchange rate on a spot trade is called the _____ exchange rate.

An agreement to exchange currencies at some point in the future using an agreed-upon exchange rate is called a _____ trade.

The idea that the exchange rate adjusts to keep buying power constant among currencies is called:

The idea that commodities have the same value no matter where they are purchased or what currency is used is known as _____ parity.

_____ holds because of the possibility of covered interest arbitrage.

The condition stating that the interest rate differential between two countries is equal to the percentage difference between the forward exchange rate and the spot exchange rate is called:

The condition stating that the current forward rate is an unbiased predictor of the future spot exchange rate is called:

The condition stating that the expected percentage change in the exchange rate is equal to the difference in interest rates between the countries is called: