International Finance And Treasury - Study Mode

[#111] A deposit or borrowing domiciled outside the home country of the currency is called as
Correct Answer

(C) euro currency

Explanation

Solution: A deposit or borrowing domiciled outside the home country of the currency is called as euro currency. The euro is the common currency for 19 countries in the eurozone. The eurozone crisis almost ended it.

[#112] The system operated by the WTO is known as the
Correct Answer

(A) multilateral trading system

Explanation

Solution: The system operated by the WTO is known as the multilateral trading system. MTS (Multilateral Trading System) The system which allows large numbers of countries to agree to trade with each other. The World Trade Organisation (WTO) is part of this system.

[#113] The price at which a market maker is prepared to sell a currency or lend money
Correct Answer

(D) offer rate

Explanation

Solution: The price at which a market maker is prepared to sell a currency or lend money is offer rate. The offer price is the rate at which the market maker will sell the base currency to a customer/market user.

[#114] Bretton woods agreement arrived at in
Correct Answer

(A) 01-07-94

Explanation

Solution: Bretton woods agreement arrived at in 01-07-94. The Bretton Woods Agreement was negotiated in July 1944 to establish a new international monetary system, the Bretton Woods System. The Agreement was developed by delegates from 44 countries at the United Nations Monetary and Financial Conference held in Bretton Woods, New Hampshire.

[#115] A contract that gives the buyer the right to buy commodity or a foreign currency from the seller at a fixed price is called as
Correct Answer

(B) call option

Explanation

Solution: A contract that gives the buyer the right to buy commodity or a foreign currency from the seller at a fixed price is called as call option. Call options are financial contracts that give the option buyer the right, but not the obligation, to buy a stock, bond, commodity or other asset or instrument at a specified price within a specific time period.