The rate of exchange of two currencies on the basis of exchange quotes of other pairs of currencies are derived when a quote of home currency (or desired currency) to any other currency is not available in the Foreign Exchange market is called ____________.

Related MCQs

• The act of arbitrage that involves three foreign currencies involving three different foreign exchange market is called __________
• An act of buying currency in one market at a lower price and selling it in another at higher price resulting in equilibrium in exchange rates of different currencies is called _________________.
• Below data is available: Spot Exchange Rate 6 Month’s Forward Rate Rs./USD 75.17 Rs. 75.00 So, the forward rate is at ___________________
• The Rate of Exchange applicable for delivery of Foreign Exchange at a future date is called ______
• When the exposed position in a foreign currency is covered through borrowing or lending in the money market, it is called ______________.
• A financial instrument that provides its holder a right but no obligation to buy or sell a pre-specified amount of a foreign currency at a pre-determined rate is referred to as ____________
• In a two way foreign exchange quotation, the difference between ask and bid prices is called ____________.
• Who are key participants of Foreign Exchange Market?
• There are basically two approaches to find out NPV of a foreign based project’s capital budgeting exercise. Which are those two?
• The current spot rate for the Euro is Rs. 86,the expected inflation rate is 5 in India and 3 in Europe. What is the expected Spot Rate of Euro one year hence?