Foreign Exchange Market Quiz
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Questions and Answers

Which term refers to the immediate exchange of bank deposits in the foreign exchange market?

  • Forward transaction
  • FX Swap agreement
  • Spot transaction (correct)
  • Exchange rate overshooting

    • What is the price of one currency in terms of another called?

  • Forward exchange rate
  • Spot exchange rate (correct)
  • Foreign exchange market
  • Exchange rate overshooting

    • What is a contract in which one party borrows one currency from, and simultaneously lends another to, the second party called?

  • Forward transaction
  • FX Swap agreement (correct)
  • Foreign exchange market
  • Spot transaction

    • What is the exchange rate determined in the foreign exchange market for immediate exchange of bank deposits called?

    <p>Spot exchange rate</p> Signup and view all the answers

    What is the exchange rate determined in the foreign exchange market for future exchange of bank deposits called?

    <p>Forward exchange rate</p> Signup and view all the answers

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