other markets and investments chp 5

What is a key characteristic of cash deposits?

Which types of deposit accounts allow immediate withdrawal of funds?

What determines the interest rate paid on cash deposits?

Which of the following is true about large deposits in cash accounts?

What differentiates cash deposits from other investments like equities and bonds?

Why do some cash deposit accounts require notice before withdrawing funds?

Which of the following is a drawback of investing in cash deposits?

What is a potential risk associated with depositing cash overseas?

Which factor does NOT contribute to the safety of cash investments?

What characteristic distinguishes cryptocurrency from fiat money?

Which type of cryptoassets provides access to services and products?

What key feature does Bitcoin utilize to create a decentralized network?

'Fiat currency' refers to money that:

What role did goldsmiths play in the history of money?

Why did people start using goldsmiths' receipts for making payments?

What was the consequence of people using goldsmiths' receipts for transactions?

What term is used to describe money that is no longer convertible into gold or any other asset?

Which function of money involves using it as a way to measure the value of an item for sale?

Why are cryptocurrencies not widely regarded as money for legal or regulatory purposes?

What is the distinguishing feature of Treasury bills that makes them different from other types of money market instruments?

Which type of money market instrument is issued by banks in return for deposited funds and can be traded like shares?

What is the main reason for issuing money market instruments at a discount to their face value?

Which party typically finds direct investment in money market instruments more suitable?

'Zero coupon' instruments refer to financial products that:

What is one of the reasons for the variation in interest rates on deposits?

Why do large deposits typically earn a better rate than smaller ones?

What is the key difference between fixed-term deposit accounts and instant access deposit accounts?

What is the impact of Islamic financial principles on savings accounts?

What is the purpose of advertising an expected profit rate for Islamic banking accounts?

Why do many non-Muslims find Islamic banking accounts appealing?

What is the primary reason for holding cash deposits according to the text?

What happens if the profit rate decreases in an Islamic banking account?

What is gross interest in terms of deposit-takers quoting rates?

What is one significant impact of monetary policy on interest rates according to the text?

What is a key reason why only the largest investors tend to invest in commercial property?

Why do private investors often choose to become involved in the property market through buy-to-let investments or second home purchases?

In what aspect do residential and commercial properties significantly differ as highlighted in the text?

What makes commercial property more suitable as an investment for long-term investing institutions compared to residential property?

Why do property funds sometimes impose moratoriums on encashments during downturns, as mentioned in the text?

What role do mutual funds and property bonds play in allowing investors indirect exposure to the property market?

What type of marketable instrument is a Certificate of Deposit (CD)?

How are Commercial Papers (CP) usually issued?

What does it mean for money market instruments to be bearer instruments?

How do money market funds differ from money market accounts?

Why are cash deposits considered unsuitable for the long term?

What role do money market investments play in a client's portfolio?

How are money market deposit accounts described in the text?

Why do money market funds tend to offer higher returns compared to money market deposit accounts?

'Ownership is simply evidenced by holding the instruments' implies that:

'CDs were introduced which could be traded on a secondary market.' indicates that CDs:

What is a distinguishing feature of property investment compared to other asset classes?

Why is diversification difficult in property investment?

What risk do money market funds introduce due to their investments?

How are money market funds different from money market accounts offered by banks?

Why might an investor choose a money market fund over a money market account?

What does the AAA rating signify for money market instruments?

In what situation might an investor consider placing funds in money markets?

Why are money market funds considered an alternative investment?

What provides protection against appreciable market risk in money market instruments?

What historical event led to the replacement of the gold standard by the Bretton Woods Agreement?

What was a key restriction imposed under the Bretton Woods Agreement to prevent currency devaluation?

What led to the eventual abandonment of the Bretton Woods Agreement in the 1970s?

What major change occurred in currency markets after the Bretton Woods Agreement was abandoned?

What development arose as a result of currencies floating freely against each other?

What is the purpose of a forward exchange contract?

What determines the relationship between spot exchange rates and forward exchange rates according to the text?

Why does the text mention converting interest rates into decimals?

How are the three-month interest rates in the UK and US adjusted for calculation in the example given?

Why would the forward rate be lower if US interest rates were lower than UK interest rates?

What is the logic behind the theory of interest rate parity as explained in the text?

In the context of forward exchange rates, why should investors be indifferent to interest rates available on bank deposits?

How do forward exchange rates help in ensuring investor indifference to interest rate differentials?

What is the key factor influencing whether a forward rate is higher or lower than the spot rate according to the text?

Why does the text mention that investors should be indifferent to interest rate differentials?

In the forex market, when would the base currency be considered strengthening relative to the counter currency?

What does a bid-ask price quote in a currency pair represent in the forex market?

What is the standard convention for quoting currency pairs in the forex market?

What does it mean when a forward transaction in the FX market is agreed upon for a fixed sum of money at a future date?

Which of the following is NOT a type of transaction typically undertaken in the FX market?

What role do central banks play in foreign exchange markets?

Why are foreign currency futures considered standardized versions of forward transactions?

'Settlement through CLS Bank or international banking system' implies what about FX transactions?

'Large international banks provide bid and ask prices' - Why do banks play this role in FX markets?

'Currency swaps are negotiated individually' - How does this differ from exchange-traded contracts?