When a bank is lack of reserves before the end of a business day in U.S., it could probably borrow from________
A. Federal Funds Markets
B. Repurchase Market
C. Federal discount window
D. All of the above
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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
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