International Finance And Treasury - Study Mode
[#186] Which of the following statement is true? 1. Rs. 63/USD is direct quote in India. 2. Rs. 63/USD is direct quote in USA. 3. 1 Rupee = 0.0158 dollars is indirect quote in India. 4. 1 Rupee = 0.0158 dollars in indirect quote in USA
Correct Answer
(C) Both 1 and 3
[#187] A company that purpose to connect sellers and buyers of foreign currency-denominated bank deposits is entitled
Correct Answer
(B) a broker
[#188] If r f and r d are the interest rates of a foreign country and domestic country, respectively and if $${S_{frac{F}{D}}}$$ and $${S_{frac{F}{D}}}$$ are spot exchange rate and forward exchange rate between the countries F and D, the interest rate parity is indicated by
Correct Answer
(C) $$frac{{left( {1 + {r_f}}
ight)}}{{left( {1 + {r_d}}
ight)}} = frac{{frac{{{f_F}}}{D}}}{{frac{{{S_F}}}{D}}}$$
[#189] Which of the following is an interest rate derivative used for interest rate management?
Correct Answer
(D) All of the above
[#190] Forward premium/differential depends upon
Correct Answer
(B) interest rate differential between two countries