Review Test Submission_ Test 2 - 202030 Summer 2020 BUSINESS latest graded A+

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Question 1 Selected Answer: True Speculation generally means buying a commodity when its price is low and then reselling it after prices rise in order to make a prot. Question 2 Selected Answer: ... False Only the USD and Japanese Yen are quoted by one unit price; all other currencies are quoted in one hundred units. Question 3 Student Dashboard myBlackboard Libraries Resources My Prole 0 out of 2 points 2 out of 2 points 2 out of 2 points Andrew Akers 1 Selected Answer: False The role of the World Bank is to supervise the exchange rate practices of member countries and to encourage the free convertibility of any national money into the monies of other countries. Question 4 Selected Answer: The (___________) monitors the various companies and organizations that are quoted on the security exchange and make sure they meet the requirements for being listed. Securities Exchange Commission Question 5 Selected Answer: Cross rates have to be calculated when parties are conducting a trade in currencies other than (____). USD Question 6 Selected Answer: True The main principle of trading on FX Markets is to select a pair of currencies and measure supply and demand by the uctuation of one currency’s market activity compared to the other. Question 7 Selected Answer: The company’s value on the market is determined by the amount of (_____) that is traded. Stock Question 8 Selected Answer: False OTC participants trade on a physical trading oor. Question 9 Selected Answer: The major functions of the FX Market include conversion, (______), arbitrage, and (_________). Insurance; lending 2 out of 2 points 2 out of 2 points 0 out of 2 points 2 out of 2 points 2 out of 2 points 0 out of 2 points Question 10 Selected Answer: False Actual currencies change hands in FX Markets transactions and can also be completed electronically. Question 11 Selected Answer: The majority of transactions on the FX include operations with (_________), where one party sells or buys dollars using other world currencies. the U.S. Dollar Question 12 Selected Answer: False The FX swap of currency amounts is normally variable. Question 13 Selected Answer: True The major dierence between the currency futures market and the OTC market is that futures settle gains and losses on a daily basis through the margin mechanism. Question 14 Selected Answer: True The Federal Exchange Commission is the main authority issuing regulations over the American securities exchange markets. Question 15 Selected Answer: Global nancial markets are important to lenders for two major reasons: (1) expanding (________) and (2) reducing (________). lending opportunities; risk Question 16 Many nations restrict hedging of their currencies due to their national and international policies and interests. [Show More]

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