Assignment-MultipleChoice.doc

要求：1、A4纸张2、手抄题目3、2011年11月23日提交作业、Multiple choice ( There is only one correct answer for each question. 30 points, 2 points each) 【 】1. International traders typically assure their profits through ( ). A.ArbitrageB.HedgeC. Market makingD. Speculation2. A forward transaction in the foreign exchange market( )A. Involves the exchange of two currencies at an agreed date. B. Involves the exchange of two currencies in the future. C. Involves the exchange of two currencies today. D. Involves the exchange of two currencies in two business days.3. Who are the major users of Forward contracts and Futures contracts, respectively?A. Hedgers and speculatorsB. Speculators and hedgersC. Hedgers and arbitragersD. Arbitragers and hedgers4. How could Peoples bank of China prevent U.S dollar from weakening?A. sell Chinese yuan for dollars and buy Chinese yuan with dollarsB. sell Chinese yuan for dollars and buy dollars with Chinese yuanC. sell dollars for Chinese yuan and buy dollars with Chinese yuanD. sell dollars for Chinese yuan and buy Chinese yuan with dollars5. Which of the following statements best describes an American form option?A. It will terminate after its expiry date.B. It will terminate before its expiry date.C. It can be exercised on or before its expiry date.D. It can only be exercised on its expiry date.6. The spot rate is $1.35/ and the 3-month forward rate is $1.40/. What is the percentage forward premium (discount) on the euro? ( )A. 3.7%B. 11.1%C. 14.8%D. 103.7%7. Dealer A asks dealer B to quote an exchange rate of the CNY against the GBP in a direct quotation from a Chinese perspective. Dealer B provides a quote of 10.6850-10.6880.A. Dealer A can buy one GBP from dealer B for 10.6880 CNY.B. Dealer A can buy one CNY from dealer B for 10.6880 GBP.C. Dealer A can buy one GBP from dealer B for 10.6850 CNY.D. Dealer A can buy one CNY from dealer B for 10.6850 GBP.8. At what exchange rate can you buy ￥1 using euro if a dealer quotes you S($/)=1.3535-1.3600 and S(￥/$)=6.5820-6.5910? ( )A. 0.1122 EUR per CNY B. 0.1116 ERU per CNY C. 0.1122 CNY per EUR D. 0.1116 CNY per EUR9.Annual interest rates are 7% in CNY and 4% in GBP. If the expected one-year exchange rate is ￥10.25, what is the spot rate (S0￥/ )？A. ￥9.6626B. ￥9.7626C. ￥9.8626D. ￥9.962610. If expected inflation is 5% and the real required return is 4%, then the Fisher effect says that the nominal interest rate should be EXACTLY ( ).A. 20.0%B. 9%C. 9.2%D. 1.0%11.Which currency is traded the most in the global foreign exchange market:( )A.JPYB.EURC.USDD.GBP12In the expression S(d/f): ( )AAn indirect quotation is being expressed.BA quantity or volume quotation is being expressed. Cd is the domestic currency and f is the foreign currency.Dd is the base currency and f is the quoted currency. 13. If the direct quotation for the Australian dollar against the USD is 1.7857 -1.7863, what is the indirect quotation?A. 1.7857 -1.7863B. 1.7863 -1.7857C. 0.5598 -0.5600D. 0.5600 -0.559814. How is the LOP different from PPP? A. The LOP applies to the prices of individual commodities. B. The LOP applies to the prices of commodities in different countries.C. The LOP applies to the general price level in a country. D. The LOP applies to different commodities with the same price.15. What relationship does covered interest parity (CIP) describe?A. The equilibrium relationship between spot and forward exchange rates. B. The equilibrium relationship between spot exchange rates and expected future exchange rates. C. The relationship between spot exchange rates, expected future spot exc