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  3. International Financial Management Study Set 1
  4. Quiz 3: International Financial Markets

Which Management Viewpoint Assumes That People Are Rational

Question 27
Multiple Choice

27)According to the text, the average foreign exchange trading around the world ____ per day. A) equals about $200 billion B) equals about $400 billion C) equals about $700 billion D) exceeds $1 trillion

Related questions
Q 28
28)Assume a Japanese firm invoices exports to the U.S. in U.S. dollars. Assume that the forward rate and spot rate of the Japanese yen are equal. If the Japanese firm expects the U.S. dollar to ____ against the yen, it would likely wish to hedge. It could hedge by ____ dollars forward. A) depreciate; buying B) depreciate; selling C) appreciate; selling D) appreciate; buying
Q 29
29)The bid-ask spread on an exchange rate can be used to directly determine: A) how an exchange rate will change. B) the transaction cost of foreign exchange. C) the forward premium. D) the currency option premium.
Q 30
30)Futures contracts are typically ____; forward contracts are typically ____. A) sold on an exchange; sold on an exchange B) offered by commercial banks; sold on an exchange C) sold on an exchange; offered by commercial banks D) offered by commercial banks; offered by commercial banks
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