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Question
Which of the following is NOT a reason that foreign exchange markets exist?a. to provide for efficient capital exchange between governments.
b. to exchange purchasing power between trading partners with different local currencies.
c. to provide a means for passing the risk associated with changes in foreign exchange rates to professional risk-takers.
d. to accommodate credit extension and delayed payments for goods and services between countries.
Answer
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Related questions
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In recent years, know-your-clients (KYC) is required by international financial regulators. In the U.S., what is the act that requires financial institutions to share information about customer identities with appropriate government agencies?
a. The USA Patriot Act
b. The Sarbanes-Oxley Act
c. The 9/11 Act
d. The U.S. Treasury Department Act
e. The Gramm-Leach-Bliley Act
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A state-chartered bank which is not a member of the Federal Reserve System will
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Financial institutions are regulated for the following reason(s):
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A "too big to fail" policy encourages small banks to take higher risks.
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The Office of the Comptroller of the Currency (OCC) is the oldest bank regulatory agency.
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A foreign branch office of a U.S. bank is regulated by
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b. the host country bank regulation.
c. the FDIC.
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e. both a and b
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All of the following are techniques reducing credit risk in international lending except
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Which of the following is associated with the currency risk of international lending by a U.S. bank?
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d. are priced relative to the LIBOR.
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a. Edge Act banks
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c. international banking facility
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Most large international loans are funded in the Eurocurrency market.
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If a hedge fund manager focused on short-selling of stocks, he/she would
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c. borrow money to invest in stocks.
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c. balanced funds
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c. working to maintain low NAV
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