Riskless transactions to take advantage of profit opportunities due to a price differential or a yield differential in excess of transaction costs are called ?

Related Mcqs:

The least common type of transaction in the foreign exchange is a ?

A. forward transaction B. spot transaction C. swap transaction D. None of the above...

The difference between bid (buying) rates and ask (selling) rates is called the ?

A. profit B. arbitrage C. spread D. forward transaction...

All currencies other than the domestic currency of a given country are referred to as ?

A. hard currency B. foreign exchange C. reserve currencies D. near monies...

In 1971, most countries ?

A. adopted a new system of fixed exchange rates B. gave up trying to fix exchange rates formally and began allowing them to be determined essentially by supply and demand C. adopted single internationally accepted currency whose use is limited to international transactions D. returned to the gold standard...

If the Bank of England reduces the money supply to reduce inflation a floating exchange rate will aid the Bank of England in fighting inflation because ?

A. as the money supply is decreased the interest rate will increase and the price of UK exports will rise and the Price of UK imports will fall B. as the money supply is decreased the interest rate will increase, and the price of UK exports will fall and the price of UK imports will … If the Bank of England reduces the money supply to reduce inflation a floating exchange rate will aid the Bank of England in fighting...