BLUE
Money denominated in the currency of another country or group of countries is called:
Foreign exchange
Which of the following is the term used for the price at which a bank is willing to buy a specific currency?
Bid
Which of the following is the term used for the price at which a bank is willing to sell a specific currency?
Ask
The Banking Reform Act of 1933 is more commonly called the ______________.
Glass-Steagall Act
People or investment firms that make investments while also bringing managerial and technical experience along with their investments are called:
Venture capitalists
Conducting financial exchanges with a financial intermediary, who acts as a go-between for the borrower and the saver, is considered which type of finance?
Indirect
Which of the following is the name for the forum in which governments, people, and companies borrow and/or invest across national boundaries?
International capital markets
Which of the following is a wide range of debt- and equity-based financial instruments?
Securities
Which of the following is a type of debt instrument that results in the saver being paid interest at a fixed rate for a specified period?
Bonds
Which of the following is a type of equity security in which the holder possesses some portion of ownership of a company’s assets and earnings?
Stocks
The difference between the bid and an ask price called:
Spread
Which of the following is defined as the right, but not necessarily the obligation, to exchange a specific amount of currency on a specific, future date for a specific price?
Currency option
The ease by which shareholders and bondholders can buy and sell securities or convert their investments into cash is called __________.
liquidity
Which of the following states the price of domestic currency in foreign currency terms?
Indirect quote
Which of these states how much domestic currency it takes to buy one unit of foreign currency?
Direct quote
Borrowing of money by issuing securities to investors in the capital market is called:
Direct finance
A ________ is the most common type of debt instrument.
bond
The market where stocks, bonds, and other securities are issued is called a:
Primary market
Which market includes stock exchanges, bond markets, and futures and options markets?
Secondary market
If someone wanted to exchange their currency for a foreign currency, they would want to know the ______________ to determine how much money they will get in the new
bid price
Which of these terms is used to describe the simultaneous and instantaneous buying and selling of currency for a profit?
Arbitrage
If someone needed to sell a specific amount of foreign currency in exchange for their own home currency, they would want to know the __________ so they know how much foreign currency they need to use.
ask price
Which of the following is defined as the exchange rate at which two parties agree to trade currency on some specified date in the future?
Forward exchange rate
The more _______________ a venture is, the greater the reward should be, commensurate with the risk being taken.
speculative
When exchanging currency, the numerator is considered the _______________.
quoted currency