Podcast
Questions and Answers
What is the main reason for London being the center of global foreign exchange trading?
What is the main reason for London being the center of global foreign exchange trading?
- Presence of a large number of foreign exchange traders
- High volume of trading conducted in London
- Significant investments in computer and telecommunications hardware and software
- Network of dealer banks actively involved in foreign exchange trading (correct)
What percentage of the global trading in foreign exchange was conducted by JPMorgan in 2018?
What percentage of the global trading in foreign exchange was conducted by JPMorgan in 2018?
- 12 percent (correct)
- 8 percent
- 10 percent
- 6 percent
What is one of the reasons why there are so few foreign exchange traders?
What is one of the reasons why there are so few foreign exchange traders?
- Lack of interest in foreign exchange trading as a career
- Presence of highly complex trading algorithms
- Capital intensity of the business (correct)
- High degree of regulation in the foreign exchange market
What kind of personality traits are desirable for a foreign exchange trader?
What kind of personality traits are desirable for a foreign exchange trader?
What is the primary reason for people to engage in the foreign exchange market?
What is the primary reason for people to engage in the foreign exchange market?
What happens when a nation's export of goods and services increases?
What happens when a nation's export of goods and services increases?
How does importing goods and services affect the home currency in the foreign exchange market?
How does importing goods and services affect the home currency in the foreign exchange market?
What determines whether U.S. exports to Britain generate a supply of pounds and a demand for dollars?
What determines whether U.S. exports to Britain generate a supply of pounds and a demand for dollars?
What is the process called when an opportunity to make a riskless profit is exploited using three different exchange rates?
What is the process called when an opportunity to make a riskless profit is exploited using three different exchange rates?
If the exchange rate for the pound in terms of dollars is $1.60, and the exchange rate for the Swiss franc in terms of dollars is $0.50, how many francs can be bought with $150?
If the exchange rate for the pound in terms of dollars is $1.60, and the exchange rate for the Swiss franc in terms of dollars is $0.50, how many francs can be bought with $150?
What tends to happen to the dollar–franc exchange rate as a result of the extra demand for francs due to triangular arbitrage?
What tends to happen to the dollar–franc exchange rate as a result of the extra demand for francs due to triangular arbitrage?
What is the main outcome of the pressures placed on the exchange rates due to triangular arbitrage?
What is the main outcome of the pressures placed on the exchange rates due to triangular arbitrage?
