The Market for Foreign ExchangeMultiple Choice Questions必看课件资料.doc

Lecture 5 - The Market for Foreign Exchange 5- PAGE 1 ? 2012 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Lecture 5(Chapter 5) The Market for Foreign Exchange ? Multiple Choice Questions? 1.?The worlds largest foreign exchange trading center is?A.?New York.B.?Tokyo.C.?London.D.?Hong Kong. ? 2.?On average, worldwide daily trading of foreign exchange is?A.?impossible to estimate.B.?$15 billion.C.?$504 billion.D.?$3.21 trillion. ? 3.?The foreign exchange market closes?A.?Never.B.?4:00 p.m. EST (New York time).C.?4:00 p.m. GMT (London time).D.?4:00 p.m. (Tokyo time). ? 4.?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. ? 5.?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 sold through dealers.D.?none of the above ? 6.?Most interbank trades are?A.?speculative or arbitrage transactions.B.?simple order processing for the retail client.C.?overnight loans from one bank to another.D.?brokered by dealers. ? 7.?At the wholesale level?A.?most trading takes place OTC between individuals on the floor of the exchange.B.?most trading takes place over the phone.C.?most trading flows over Reuters and EBS platforms.D.?most trading flows through specialized broking firms. ? 8.?Intervention in the foreign exchange market is the process of?A.?a central bank requiring the commercial banks of that country to trade at a set price level.B.?commercial banks in different co