An arbitrageur in foreign exchange is a person who

Related MCQs

• A firm that buys foreign exchange in order to take advantage of higher foreign interest rates is
• When the foreign exchange market opens in the UK each morning, the opening exchange rate quotations will be based on the:
• Under a fixed exchange standard, if the domestic demand for foreign exchange increases
• When the foreign exchange market opens in the UK each morning, the opening exchange rate quotations will be based on the:
• A _______ involves an exchange of currencies between two parties, with a promise to re-exchange currencies at a specified exchange rate and future date.
• A _______ involves an exchange of currencies between two parties, with a promise to re- exchange currencies at a specified exchange rate and future date.
• A speculator in foreign exchange is a person who
• When a firm perceives that a foreign currency is ________, the firm may attempt direct foreign investment in that country, as the initial outlay should be relatively _______.
• Assume a UK firm uses a forward contract to hedge all of its translation exposure. Also assume that the firm underestimated what its foreign earnings would be. Assume that the foreign currency depreciated over the year. The firm would generate a translation _______, which would be _______ than the gain generated by the forward contract.
• When a foreign subsidiary is not wholly owned by the parent and a foreign project is partially