Chapter 5Practice questions and answer keys.docxVIP

Lecture #3 – Practice Questions – International Financial Management 456 Chapter 5 – The Market for Foreign Exchange Most foreign exchange transactions are for?A.?intervention by central banks.B.?interbank trades between international banks or nonbank dealers.C.?retail trade.D.?purchase of hard currencies. The difference between a broker and a dealer is?A.?dealers sell drugs; brokers sell houses.B.?brokers bring together buyers and sellers, but carry no inventory; dealers stand ready to buy and sell from their inventory.C.?brokers transact in stocks and bonds; currency is bought and sol