Economics > EXAM > Monetary Economics (ECS3701) Selected Examination Questions and suggested solutions [211581]2023 (All)
Monetary Economics (ECS3701) Selected Examination Questions and suggested solutions [211581]2023
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The foreign exchange market - -is the market in which participants are able to buy, sell, exchange and speculate on currencies. -Foreign exchange markets - -are made up of banks, commercial compani... es, central banks, investment management firms, hedge funds, and retail forex brokers and investors. -The foreign exchange market - -is considered the largest financial market in the world. -Foreign Exchange Market - -A market is a market for converting the currency of one country into that of another country. -Exchange Rate - -The rate at which one currency is converted into another. -Foreign Exchange Risk - -The risk that changes in exchange rates will hurt the profitability of a business deal. -Functions of the Foreign Exchange Market - -Enables the conversion of the currency of one country into the currency of another Provides some insurance against foreign exchange risk -Currency speculation is another use of foreign exchange markets - -Short-term movement of funds from one currency to another to profit from shifts in exchange rates -Currency Conversion - -To convert export receipts, income received from foreign investments, or income received from licensing agreements To pay a foreign company for products or services To invest spare cash for short terms in money markets Exploit=Currency Speculation [Show More]
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Monetary Economics (ECS3701) Selected Examination Questions and suggested solutions 2023
Assets are things that are useful or things that have value. T or F. - -True -One of the most important prices determined in financial markets is the __________________ rate. - -interest -When a...
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The flow of revenue we receive over time for our services. - -Income -Businesses use their savings to make ___________________ expenditures in capital equipment, inventories, and to acquire financi...
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