1. Which one of the following financial markets is the largest in the world in t
ID: 2793069 • Letter: 1
Question
1. Which one of the following financial markets is the largest in the world in terms of daily trading volume? a. equities b. corporate bonds c. options d. foreign exchange 2. Currently, it requires S1.1850 to purchase 1 euro. This is an example of a: a. direct quote b. indirect quote c. bid quote d. ask quote 3. Currently, it requires 0.8439 euro to purchase 1 US dollar This is an example of a: a. direct quote b. indirect quote c. bid quote d. ask quote 4. The process of buying and selling in more than one market to make riskless profit is called: a. speculative trading b. arbitrage c. investment banking 5. The rate at which a trader is willing to sell an underlying currency is known as the: a. direct quote b. indirect quote c. bid rate d. ask rate 6. The rate at which a trader is willing to buy an underlying currency is known as the: a. direct quote b. indirect quote c. bid rate d. ask rate 7. The spot rate of Canadian dollar to US dollar is 0.73000 and the 6-month forward rate is 0.73057. What is the premium from the existing spot rate for the 6-month Canadian dollar? a. 0.108% b. 0.114% c. 0.1 56% d. 0.161%Explanation / Answer
1.
Foreign exchange market is largest financial market in world in term of daily trading volume. On an average total $4 trillion worth of foreign exchange traded in all over world.
Option (D) is correct answer.
2.
In Indirect Quote, foreign currency is denoting for one unit of domestic currency and in direct quote one of foreign currency is denoted in unit of domestic currency. So, given quote of $1.1850 per euro is direct quote.
Option (A) is correct answer.
3.
In Indirect Quote, foreign currency is denoting for one unit of domestic currency and in direct quote one of foreign currency is denoted in unit of domestic currency. So, given quote of 0.8439 per dollar is Indirect quote.
Option (B) is correct answer.
4.
The process of buying and selling in more than one market to make riskless profit is called Arbitrage trading.
Option (B) is correct answer.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.