Question 1

Bretton woods is a town in _________________ in US&#10;A)Boston&#10;B)Seattle&#10;C)Hampshire&#10;D)Denver

Accepted Answer

Bretton Woods is a town in New Hampshire, United States. It is known for the Bretton Woods Conference held in 1944, which led to the establishment of the International Monetary Fund and the World Bank.

Question 2

G -10 Countries included all of the following, except ____________&#10;A)Belgium&#10;B)Canada&#10;C)France&#10;D)China

Accepted Answer

The G-10 (Group of Ten) countries include major economies like Belgium, Canada, and France, but not China. The G-10 refers to a group of 11 industrialized nations that consult and cooperate on economic, monetary, and financial matters. China is not part of this group; it is instead a key member of other international groups like the G20.

Question 3

Under _______ monetary unit is associated with the value of circulating gold coins.&#10;A)Gold Specie&#10;B)Gold Exchange&#10;C)Gold Bullion&#10;D)Silver

Accepted Answer

Gold Specie Standard involves the use of gold coins as the principal currency, directly linking the monetary unit to the value of circulating gold coins.

Question 4

Under ____________ there is no interference of monetary authorities to decide exchange rate.&#10;A)Fixed&#10;B)Floating&#10;C)Both of these&#10;D)Fixing

Accepted Answer

Under a floating exchange rate system, the value of a currency is allowed to fluctuate according to the foreign exchange market without interference from the government or the country's monetary authorities.

Question 5

In Smithsonian Agreement, the variation zone was increased from 1% to ____________ %'&#10;A)2.25&#10;B)2.5&#10;C)2.15&#10;D)2.35

Accepted Answer

The Smithsonian Agreement, reached in 1971, increased the variation zone for currency values from ±1% to ±2.25%.

Question 6

In ____________ president Nixon announced that dollar would no longer be convertible into gold.&#10;A)1944&#10;B)1945&#10;C)1970&#10;D)1971

Accepted Answer

In 1971, President Nixon announced the suspension of the dollar's convertibility into gold, marking the end of the Bretton Woods system and leading to the floating exchange rates we see today.

Question 7

During BWS, value of USD was fixed at 1-ounce gold is equal to USD______________&#10;A)25&#10;B)30&#10;C)45&#10;D)35

Accepted Answer

During the Bretton Woods System (BWS), the value of the USD was fixed at 1 ounce of gold being equal to USD 35.

Question 8

In Spot market, exchange of currencies take place on ___________&#10;A)T +1&#10;B)T+2&#10;C)T+0&#10;D)T+4

Accepted Answer

The answer of In Spot market, exchange of currencies take...

Question 9

An account which is held within a domestic country by a foreign bank, in the currency of domestic country _________________&#10;A)Loro&#10;B)Nostro&#10;C)Vostro&#10;D)SWIFT

Accepted Answer

A Vostro account is held by a foreign bank in the domestic currency of the country where the account is located.

Question 10

SBI Account with HSBC in Uk is an example of ___________&#10;A)Loro&#10;B)Nostro&#10;C)Vostro&#10;D)SWIFT

Accepted Answer

A Nostro account is an account that a bank holds in a foreign currency in another bank. The example given, an SBI (State Bank of India) account with HSBC in the UK, is an account that SBI holds in the UK, likely in pounds sterling, making it a Nostro account from the perspective of SBI.

Question 11

Spot rate is also called as ________________&#10;A)Future Price&#10;B)Forward Price&#10;C)Swap Price&#10;D)Current Market Price

Accepted Answer

The answer of Spot rate is also called as ________________&#10;A)Future...

Question 12

Inverse quote for &#34;1GBP = 99.1100/9900 INR is INR GBP____________&#10;A)0.0101/0.0100&#10;B)0.0100/0.0105&#10;C)0.0105/0.0100&#10;D)0.0100/0.0101

Accepted Answer

The answer of Inverse quote for &#34;1GBP = 99.1100/9900 INR...

Question 13

If USD SGD 1.5423/33; SGD GBP 0.3323/33; GBP USD quotation is __________________&#10;A)1.9512/444&#10;B)1.9441/512&#10;C)1.9444/512&#10;D)1.9512/441

Accepted Answer

The answer of If USD SGD 1.5423/33; SGD GBP 0.3323/33;...

Question 14

Inverse quote for USD / DKK 5.7935 - 5.8085 is _________________&#10;A)DKK /USD 0.1722-0.1726&#10;B)USD / DKK 0.1722-0.1726&#10;C)DKK / USD 0.1726-0.1722&#10;D)USD / DKK 0.1726-0.1722

Accepted Answer

The answer of Inverse quote for USD / DKK 5.7935...

Question 15

Holgate principle, if bid > Ask, Swap points for forward rate are to be_________&#10;A)Added&#10;B)Subtracted&#10;C)Multiplied&#10;D)Divided

Accepted Answer

The answer of Holgate principle, if bid > Ask, Swap...

Question 16

_________ is the smallest unit by which a currency quotation can change.&#10;A)PIP&#10;B)Bid&#10;C)Ask&#10;D)Spread

Accepted Answer

The answer of _________ is the smallest unit by which...

Question 17

_________ deal in currencies to benefit from movements in currency exchange markets.&#10;A)Arbitrageurs&#10;B)Hedgers&#10;C)Speculators&#10;D)Spread

Accepted Answer

The answer of _________ deal in currencies to benefit from...

Question 18

__________ is real time gross settlement funds transfer system operated by the United states Federal reserve banks.&#10;A)Swift&#10;B)Chips&#10;C)Chaps&#10;D)Fedwire

Accepted Answer

The answer of __________ is real time gross settlement funds...

Question 19

Spot used INR 60- and six-months forward is USD INR 61.AFM is ____________&#10;A)3.33%&#10;B)1.13%&#10;C)2.33%&#10;D)4.33%

Accepted Answer

The answer of Spot used INR 60- and six-months forward...

Question 20

_________ is market where foreign currencies are bought and sold.&#10;A)Stock Market&#10;B)Forex Market&#10;C)Capital Market&#10;D)Debt Market

Accepted Answer

The answer of _________ is market where foreign currencies are...

Question 21

_________ theory states that the exchange rate between currencies of two countries should be equal to the ratio of the countries price levels.&#10;A)IRP&#10;B)PPP&#10;C)Fisher`s&#10;D)T Bills

Accepted Answer

The answer of _________ theory states that the exchange rate...

Deck 4: Foreign Exchange and Monetary Systems