BMAL 604 Fall 2015 Quiz 3 (Latest 2015)

Question 1 5 out of 5 points

Traders who participate in currency arbitrage are taking risks (staying open) because they buy and sell currencies based on the predicated rise and fall in price of a given currency.

Question 2 5 out of 5 points

Hedge funds help spread large risks, to the extent that they become acceptable to a greater number of investors.

Question 3 5 out of 5 points

According to the Bank of International Settlements 2013 Trigeminal Survey, Turnover in traditional foreign exchange instruments is $5.3 million per day.

Question 4 5 out of 5 points

The FX Market has gradually evolved into the largest, fastest, and most flexible currency trading market in the world.

Question 5 5 out of 5 points

Forward transactions are used in hedging to protect profits of companies operating internationally.

Question 6 5 out of 5 points

The overspending of money by borrowers (both consumer and industrial) helps perpetuate the expansion of the money supply.

Question 7 5 out of 5 points

President Franklin D. Roosevelt took the U.S. off the gold standard, and paper currency was no longer redeemable in gold

Question 8 5 out of 5 points

The most prominent financial markets are located in New York, Tokyo, and London.

Question 9 5 out of 5 points

Global Financial Markets include both physical and virtual market places that make the cross-border exchange of goods and services between buyers and sellers possible.

Question 10 5 out of 5 points

According to the theory of PPP, the factors that directly involve the international trade include costs of transportation and social perception of commodities.

Question 11 5 out of 5 points

Elections for the Council of the European Union are held every five years, and all registered EU citizens are allowed to vote.

Question 12 5 out of 5 points

ECOWAS is the largest trade agreement in the world

Question 13 5 out of 5 points

The United States is an example of a Political Union.

Question 14 5 out of 5 points

Slovakia, Slovenia, and Croatia are all members of the EU.

Question 15 5 out of 5 points

Contributing factors to issues in ECOWAS include lack of infrastructure, undiversified economies, the existence of other organizations with the same purpose, and political instability.

Question 16 5 out of 5 points

CACM was established with the Treaty of Chaguaramas.

Question 17 5 out of 5 points

Currently, most industrialized and less-developed nations are participants of at least one trading bloc.

Question 18 5 out of 5 points

Regional integration is the process whereby counties remove barriers to trade between themselves, but each country determines its own barriers nonmembers.

Question 19 5 out of 5 points

In a Free Trade Area all barriers of trade among members are removed, and a common external trade policy is adopted.

Question 20 5 out of 5 points

Tariff barriers to trade include laws and regulation that restrict trade.