Essay:-
1. How important is the creation of international banking facilities to the international competitiveness of the U.S banking industry?
2. Supposed the Federal Reserve Board (FRB) unexpectedly raises interest rates in the United States. How will this action affect the foreign-exchange market?
3. Do you expect the U.S dollar to maintain its position as the dominant currency in the foreign-exchange market or will the Euro supplant it?
4. In your own words, describe how the supply and demand of currency affects the price of that currency in the foreign-exchange market.
5. In your own word, explain the differences among the 2-point arbitrage, the 3-point arbitrage, and the covered interest arbitrage.
Multiple choice:-
1. Match the correct arbitrage with the difference it overcome.
a) 2-point & geography, 3-point & currency type, covered interest & time
b) 2-point & time, 3-point & currency type, covered interest & geography
c) 2-point & geography, 3-point & time, covered interest & currency type
d) 2-point & currency type, 3-point & geography, covered interest & time
2. This term is used to describe the foreign-exchange rate between two currencies calculated through the use of a third currency
a) Arbitrage rate
b) Exchange rate
c) Swap rate
d) Cross rate
3. This type of bank is an overseas operation in which it takes part ownership of a host country's bank in conjunction with a local bank
a) Subsidiary bank
b)Branch bank
c) Affiliated bank
d) Global equity bank
4. What is the Eurocurrency?
a) The named of the European Union's currency
b) Any foreign-exchange involving the EU's euro
c) Any currency on deposit outside its country of issue
d) The original currency of EU members
5. Where is the largest foreign exchange market?
a) New York
b) Tokyo
c) London
d) Singapore
4. In your own words, describe how the supply and demand of currency affects the price of that currency in the foreign-exchange market.
5. In your own word, explain the differences among the 2-point arbitrage, the 3-point arbitrage, and the covered interest arbitrage.
Multiple choice:-
1. Match the correct arbitrage with the difference it overcome.
a) 2-point & geography, 3-point & currency type, covered interest & time
b) 2-point & time, 3-point & currency type, covered interest & geography
c) 2-point & geography, 3-point & time, covered interest & currency type
d) 2-point & currency type, 3-point & geography, covered interest & time
2. This term is used to describe the foreign-exchange rate between two currencies calculated through the use of a third currency
a) Arbitrage rate
b) Exchange rate
c) Swap rate
d) Cross rate
3. This type of bank is an overseas operation in which it takes part ownership of a host country's bank in conjunction with a local bank
a) Subsidiary bank
b)Branch bank
c) Affiliated bank
d) Global equity bank
4. What is the Eurocurrency?
a) The named of the European Union's currency
b) Any foreign-exchange involving the EU's euro
c) Any currency on deposit outside its country of issue
d) The original currency of EU members
5. Where is the largest foreign exchange market?
a) New York
b) Tokyo
c) London
d) Singapore