國(guó)際財(cái)務(wù)管理作業(yè)chapter 3 - test bank

1、Chapter 3—International Financial Markets 1. Assume that a bank's bid rate on Swiss francs is $.45 and its ask rate is $.47. Its bid-ask percentage spread is: a. about 4.44%. b. about 4.26%. c. about 4.03%. d. a

2、bout 4.17%. ANS: B SOLUTION: Bid-ask percentage spread = ($.47 ? $.45)/$.47 = 4.26% PTS: 1 2. Assume that a bank's bid rate on Japanese yen is $.0041 and its ask rate is $.0043. Its bid-ask percentage spread is:

3、a. about 4.99%. b. about 4.88%. c. about 4.65%. d. about 4.43%. ANS: C SOLUTION: Bid-ask percentage spread = ($.0043 ? $.0041)/$.0043 = 4.65% PTS: 1 3. The bid/ask spread for small retail transactions is commonly in

4、 the range of ____ percent. a. 3 to 7 b. .01 to .03 c. 10 to 15 d. .5 to 1 ANS: A PTS: 1 4. ____ is not a factor that affects the bid/ask spread. a. Order costs b. Inventory costs c. Volume d. All of the above fac

5、tors affect the bid/ask spread ANS: D PTS: 1 5. The forward rate is the exchange rate used for immediate exchange of currencies. a. True b. False ANS: F PTS: 1 6. The ask quote is the price for which a bank offers to

6、 sell a currency. a. True b. False ANS: T PTS: 1 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed

7、with a certain product or service or otherwise on a password-protected website for classroom use. a. purchase price b. sale price c. A or B d. none of the above ANS: C PTS: 1 14. The forward market: a. for euros is

8、very illiquid. b. for Eastern European countries is very liquid. c. does not exist for some currencies. d. none of the above ANS: C PTS: 1 15. ____ is not a bank characteristic important to customers in need of forei

9、gn exchange. a. Quote competitiveness b. Speed of execution c. Forecasting advice d. Advice about current market conditions e. All of the above are important bank characteristics to customers in need of foreign excha

10、nge. ANS: E PTS: 1 16. The Basel II accord is focused on eliminating inconsistencies in ____ across countries. a. capital requirements b. deposit rates c. deposit insurance d. bank failure policies ANS: A PTS: 1 17.

11、 The international money market primarily concentrates on: a. short-term lending (one year or less). b. medium-term lending. c. long-term lending. d. placing bonds with investors. e. placing newly issued stock in for

12、eign markets. ANS: A PTS: 1 18. The international credit market primarily concentrates on: a. short-term lending (less than one year). b. medium-term lending. c. long-term lending. d. providing an exchange of foreign

13、 currencies for firms who need them. e. placing newly issued stock in foreign markets. ANS: B PTS: 1 19. The main participants in the international money market are: a. consumers. b. small firms. c. large corporation

14、s. d. small European firms needing European currencies for international trade. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permit