International Finance And Treasury - Study Mode
[#231] In a quote exchange rate, currency that is to be purchase with another currency is called :
Correct Answer
(D) base currency
Explanation
Solution: In a quote exchange rate, currency that is to be purchase with another currency is called base currency. A base currency is the first currency that appears in a forex pair quotation. In the foreign exchange market, one currency will always be quoted in relation to another because you are buying one while selling the other.
[#232] Holding an inventory have
Correct Answer
(C) opportunity cost
Explanation
Solution: Holding an inventory have opportunity cost. Opportunity costs represent the benefits an individual, investor or business misses out on when choosing one alternative over another. While financial reports do not show opportunity cost, business owners can use it to make educated decisions when they have multiple options before them.
[#233] Today, important factor that result in augmentation in international bond market is
Correct Answer
(A) low interest rates
(E) low interest rates
Explanation
Solution: Today, important factor that result in augmentation in international bond market is low interest rates. The foreign bond market includes the bonds that are sold in a country using that country's currency but issued by a non-domestic borrower.
[#234] Governments enforce currency limitations to
Correct Answer
(D) all of above
Explanation
Solution: Governments enforce currency limitations to protect a currency from speculators, keep resident individuals and businesses from investing in other nations and preserve hard currencies to finance trade deficits or repay debts.
[#235] The world’s four major trading currencies are all free to float against each other. They include all the following except.
Correct Answer
(C) The Spanish Peso
Explanation
Solution: The world’s four major trading currencies are all free to float against each other. They include all the following except The Spanish Peso.