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BUSI 604BUSI 604 TEST 2. graded A+ document required for easier passing of exams

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Question 1 2 out of 2 points (________) and (_________) quotation are also referred to as American and European Quotes. Selected Answer: direct and indirect Question 2 2 out of 2 points The eco ... nomies of the world have become highly interdependent because of improvements in communication and transportation technologies and the lowering of barriers to trade. Selected Answer: True Question 3 2 out of 2 points A (_________) notifies the investor of the price movement of shares he or she holds in the security exchange. Selected Answer: Trade alert Question 4 2 out of 2 points While hedging may protect against (_________), it may eliminate a potential for unexpected (______). Selected Answer: loss; gain Question 5 0 out of 2 points Eurocurrency and Eurobanks do not necessarily mean the currencies or the banks are European. Selected Answer: False Question 6 2 out of 2 points Consumers attempt to offset inflation by exchanging (_________) for something that is perceived to hold a value better such as property, gold, or foreign currencies. Selected Answer: lower-value currency Question 7 2 out of 2 points In the United States, the Federal Reserve Bank is responsible for regulating the growth of the economy, which is accomplished by the increase or decrease of currency exchange. Selected Answer: False Question 8 2 out of 2 points Global Financial Markets include both(__________) and (________) market places that make the cross-border exchange of goods and services between buyers and sellers possible. Selected Answer: physical and virtual Question 9 2 out of 2 points The FX swap of currency amounts is normally variable. Selected Answer: False Question 10 0 out of 2 points Actual currencies change hands in FX Markets transactions and can also be completed electronically. Selected Answer: True Question 11 2 out of 2 points The two most popular products traded on security exchange markets are stocks and treasury bills. Selected Answer: False Question 12 2 out of 2 points OTC participants trade on a physical trading floor. Selected Answer: False Question 13 0 out of 2 points The end result of the global competition is higher (_______) and lower (_________) for consumers. Selected Answer: prices; exchange rates Question 14 0 out of 2 points The major difference between the currency futures market and the OTC market is that futures settle gains and losses on a daily basis through the margin mechanism. Selected Answer: False Question 15 2 out of 2 points 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. Selected Answer: False Question 16 2 out of 2 points A large percentage of all FX market transactions are spot transactions. Selected Answer: True Question 17 2 out of 2 points (_________) are used as an alternative to borrowing and lending in the Eurodollar and other offshore markets. Selected Answer: FX swaps [Show More]

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