logo
menu
Sign up
  1. Topics
  2. Business
  3. Bank Management
  4. Quiz 17: Global Banking Activities

If the Spot Rate Is 1

Question 23
Multiple Choice

If the spot rate is 1.67CAN$/US$ and the 1-month forward rate is 1.70CAN$/US$: A)the Canadian dollar is selling at a premium. B)the Canadian dollar is selling at a discount. C)the U.S.dollar is selling at a discount. D)the U.S.dollar is selling at par. E)none of the above

Related questions
Q 24
Covered interest rate arbitrage is possible when: A)both currencies are appreciating. B)the actual inflation rates are identical in both countries. C)the difference in the interest rates in two countries exactly equals the spot-to-forward exchange rate differential. D)the difference in interest rates in two countries is out of line with the spot-to-forward exchange rate differential. E)none of the above
Q 25
A forward market exchange in foreign currencies is an agreement to exchange: A)currencies in the future at an unspecified time at an exchange rate determined at the time the contract is agreed to. B)currencies in the future at a specified time at an unknown exchange rate. C)currencies in the future at an unspecified time at an unknown exchange rate. D)a product for a foreign currency in the future at a specified time. E)currencies in the future at a specified time at an exchange rate determined at the time the contract is signed.
Q 26
Foreign banks generally operate with higher capital ratios than U.S.banks.
logo
QuizPlus
  • About
  • How it work
  • Pricing
Links
  • Privacy Policy
  • Terms And Conditions
  • Refund Policy
Contact Us
  • info@quizplus.com
© 2020-2021 Cozyplus FZ LLC. All rights reserved