Chapter3InternationalFinancialMarketsAssumethatabank'sbidrateonSwissfrancsis$.45anditsaskrateis$.47.Itsbid-askpercentagespreadis:about4.44%.about4.26%.about4.03%.about4.17%.ANSWER:Bbid/askspreadaskrate—bidratebid/askspreadaskrate—bidrateaskrateSOLUTION:Bid-askpercentagespread=($.47-$.45)/$.47=4.26%Assumethatabank'sbidrateonJapaneseyenis$.0041anditsaskrateis$.0043.Itsbid-askpercentagespreadis:about4.99%.about4.88%.about4.65%.about4.43%.ANSWER:CSOLUTION:Bid-askpercentagespread=($.0043-$.0041)/$.0043=4.65%Thebid/askspreadforsmallretailtransactionsiscommonlyintherangeof percent;thebid/askspreadforwholesaletransactionsiscommonlyintherangeof percent.A)3to7;.01to.032to5;.05to.1010to15;.01to.031to2;.05to.07ANSWER:Aisnotafactorthataffectsthebid/askspread.OrdercostsInventorycostsVolumeAlloftheabovefactorsaffectthebid/askspreadANSWER:DTheforwardrateistheexchangerateusedforimmediateexchangeofcurrencies.true.false.ANSWER:BTheaskquoteisthepriceforwhichabankofferstosellacurrency.true.false.ANSWER:AAccordingtothetext,theforwardrateiscommonlyusedfor:hedging.Eurocurrencytransactions.Eurocredittransactions.Eurobondtransactions.ANSWER:AIfaU.S.firmdesirestoavoidtheriskfromexchangeratefluctuations,anditisreceiving100,000in90days,itcould:obtaina90-dayforwardpurchasecontractoneuros.obtaina90-dayforwardsalecontractoneuros.purchaseeuros90daysfromnowatthespotrate.selleuros90daysfromnowatthespotrate.ANSWER:BIfaU.S.firmdesirestoavoidtheriskfromexchangeratefluctuations,anditwillneedC$200,000in90daystomakepaymentonimportsfromCanada,itcould:obtaina90-dayforwardpurchasecontractonCanadiandollars.obtaina90-dayforwardsalecontractonCanadiandollars.purchaseCanadiandollars90daysfromnowatthespotrate.sellCanadiandollars90daysfromnowatthespotrate.ANSWER:AAssumetheCanadiandollarisequalto$.88andthePeruvianSolisequalto$.35.ThevalueofthePeruvianSolinCanadiandollarsis:about.3621Canadiandollars.about.3977Canadiandollars.about2.36Canadiandollars.about2.51Canadiandollars.ANSWER:BSOLUTION:$.35$.88=.3977Whichofthefollowingisnottruewithrespecttospotmarketliquidity? 現(xiàn)貨市場(chǎng)流動(dòng)性Themorewillingbuyersandsellersthereare,themoreliquidamarketis.ThespotmarketsforheavilytradedcurrenciessuchastheJapaneseyenareveryliquid.Acurrency'sliquidityaffectstheeasewithwhichanMNCcanobtainorsellthatcurrency.Ifacurrencyisilliquid,anMNCistypicallyabletoquicklypurchasethatcurrencyatareasonableexchangerate.ANSWER:DForwardmarketsforcurrenciesofdevelopingcountriesare:prohibited.lessliquidthanmarketsfordevelopedcountries.moreliquidthanmarketsfordevelopedcountries.onlyavailableforusebygovernmentagencies.發(fā)展中國家現(xiàn)貨市場(chǎng)流動(dòng)性較低ANSWER:BofaspecifiedcurrencyforaAforwardcontractcanbeusedtolockinthefuturepointintime.ofaspecifiedcurrencyforapurchasepricesalepriceAorBnoneoftheaboveANSWER:CTheforwardmarket:foreurosisveryilliquid.forEasternEuropeancountriesisveryliquid.doesnotexistforsomecurrencies.noneoftheaboveANSWER:Cisnotabankcharacteristicimportanttocustomersinneedofforeignexchange.QuotecompetitivenessSpeedofexecutionForecastingadviceAdviceaboutcurrentmarketconditionsAlloftheaboveareimportantbankcharacteristicstocustomersinneedofforeignexchange.ANSWER:ETheBaselIIaccordwould:replacetheBaselAccord.reducetheamountofcapitalbanksarerequiredtohold.requirebankstotakemorerisksandtodocumenttheirrisk.correctsomeinconsistenciesthatstillexist.OperationriskANSWER:DTheinternationalmoneymarketprimarilyconcentrateson:short-termlending(oneyearorless).IMM短期借款medium-termlending.Iong-termlending.placingbondswithinvestors.placingnewlyissuedstockinforeignmarkets.ANSWER:ATheinternationalcreditmarketprimarilyconcentrateson:short-termlending(lessthanoneyear).medium-termlending.long-termlending.歐洲信用貸款市場(chǎng)providinganexchangeofforeigncurrenciesforfirmswhoneedthem.placingnewlyissuedstockinforeignmarkets.ANSWER:B19.Themainparticipantsintheinternationalmoneymarketare:consumers.smallfirms.largecorporations.smallEuropeanfirmsneedingEuropeancurrenciesforinternationaltrade.ANSWER:C20.LIBORis:同業(yè)拆借利率theinterestratecommonlychargedforloansbetweenbanks.theaverageinflationrateinEuropeancountries.themaximumloanrateceilingonloansintheinternationalmoneymarket.themaximumdepositrateceilingondepositsintheinternationalmoneymarket.themaximuminterestrateofferedonbondsthatareissuedinLondon.ANSWER:AAsyndicatedEurocreditloan:representsaloanbyasinglebanktoasyndicateofcorporations.representsaloanbyasinglebanktoasyndicateofcountrygovernments.representsadirectloanbyasyndicateofoil-producingexporterstoalessdevelopedcountry.representsaloanbyagroupofbankstoaborrower.AandBANSWER:DTheinternationalmoneymarketisprimarilyservedby:thegovernmentsofEuropeancountries,whichdirectlyinterveneinforeigncu