The authors identify two tiers of foreign exchange markets:
A. bank and nonbank foreign exchange.
B. commercial and investment transactions.
C. interbank and client markets
D. client and retail market.
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A/An ________ is an agreement between a buyer and seller that a fixed amount of one currency will be delivered at a specified rate for some other currency.
A. Eurodollar transaction
B. import/export exchange
C. foreign exchange transaction
D. interbank market transaction
Which of the following would NOT be considered a direct investment either into or from the United States?
A. the purchase of U.S. Treasury (debt) securities
B. Ford Motor Company building an assembly plant in Mexico
C. Honda of Japan building a manufacturing plant in Alabama
D. Intel purchasing a chip manufacturing plant(工厂)in Thailand
The financial account consists COMPLETELY of which three components?
A. stock investment, bond investment, and mutual fund investment
B. direct investment, stock investment, and bond investment
C. direct investment, portfolio investment, and other asset investment
D. mutual fund investment, portfolio investment, and stock investment
The ________ includes all international economic transactions with income or payment flows occurring within the year.
A. capital account
B. current account
C. financial account
D. IMF account