Foreign exchange ________ earn a profit by a bid-ask spread on currencies they purchase and sell. Foreign exchange ________, on the other hand, earn a profit by bringing together buyers and sellers of foreign currencies and earning a commission on each sale and purchase.
A. central banks; treasuries
B. dealers; brokers
C. brokers; dealers
D. speculators; arbitragers
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Which of the following may be participants in the foreign exchange markets?
A. bank and nonbank foreign exchange dealers
B. central banks and treasuries
C. speculators and arbitragers
D. All of the above
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.
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