Which financial instrument provides a buyer the right to purchase or sell a fixed amount of currency at a prearranged price, within a few days to a couple of years ?

Related Mcqs:

Suppose there occurs an increase in the Canadian demand for Japanese computers This results in a (an) ?

A. increase in the demand for yen B. decrease in the demand for yen C. increase in the supply of yen D. decrease in the Supply of yen...

The reduction or covering of foreign exchange risk is called ?

A. hedging B. speculation C. intervention D. arbitrage...

An important feature of a _______ is that the holder has the right but not the obligation to buy or sell currency ?

A. Swap B. foreign exchange arbitrage C. foreign exchange option D. futures market contract...

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...

The rise in value of one currency relative to another is ?

A. a weakening of a currency B. A depreciation of a currency C. An appreciation of a currency D. a debasement of a currency...