When the exposed position in a foreign currency is covered through borrowing or lending in the money market, it is called ______________.

Related MCQs

• 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 ____________.
• The act of arbitrage that involves three foreign currencies involving three different foreign exchange market 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 ____________
• 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 _________________.
• Who are key participants of Foreign Exchange Market?
• Which is the market for financial assets that are close substitutes for money?
• Which Money Market instrument is a time deposit of specific maturity and issued in bearer form?
• In which Money Market instrument default risk is absent?
• Which of the following is considered to be the key segment of Indian Money Market?
• What type of relationship is there between call rates and short-term money market instruments such as CDs and CPs?