Currency speculation involves the short-term movement of funds from one currency to another in the hopes of profiting from shifts in exchange rates.
TRUE or FALSE
What is TRUE
100
Under the Jamaica Agreement, floating exchange rates were declared acceptable, and gold was abandoned as a reserve asset.
TRUE or FALSE
What is TRUE
100
Adverse consequences of unpredictable changes in exchange rates is known as
What is Foreign Exchange Risk
100
A contract requiring the exchange of a specified amount of currency on a specified date at a specified exchange rate, with all conditions fixed and not adjustable.
What is currency futures contract
100
This countries hyperinflation has some retailers weighing money instead of counting it.
Where is Venezuela
200
The simultaneous purchase and sale of a given amount of foreign exchange for two different value dates is referred to as a
What is currency swap
200
The ______ maintains order in the international monetary system
What is IMF
200
When currencies generally float against one another with some government intervention when needed.
What is managed float
200
According to ______, in competitive markets free of transportation costs and barriers to trade, identical products sold in different countries must sell for the same price when their price is expressed in terms of the same currency
What is law of one price
200
This European country has a struggling economy, yet has the world's healthiest people.
Who is Italy
300
The ease with which bondholders and shareholders may convert their investments into cash.
What is liquidity
300
In 1976, the ________ formalized the floating exchange rate system that followed the collapse of Bretton Woods.
What is Jamaica Agreement
300
The exchange rate is (definition)
What is the rate at which one currency is converted into another
300
A currency that is traded freely in the foreign exchange market is said to be
What is convertible
300
The United Kingdom has followed the United States in preventing passengers on flights from some countries in the Middle East and Africa from carrying devices such as _________ in the cabin.
What is laptops and tablets.
400
The world's three most important financial centers
What is Tokyo, New York, and London
400
The World Bank was created by the ____________.
What is Brentton Woods Agreement
400
In a _____ exchange rate system, the value of a set of currencies is fixed against each other at some mutually agreed on exchange rate.
What is fixed
400
The intentional raising of the value of a currency by the nation's government.
What is revaluation.
400
The week leading up to this holiday is the most lucrative for candy manufactures.
What is Easter
500
High inflation in one coutry should see its currency _____ in relation to a country with no inflation.
What is fall
500
Two factors as to why Brentton Woods failed.
What is inflation, high U.S. trade deficit, Japan and Europe floated their currency, speculative attack
500
The efficient market view believes the best predictor of exchange rates is
What is forward exchange rates
500
A network of individuals, companies, financial institutions, and governments that invest and borrow across national boundaries.