Using the the description or the definition below, identify each of the key terms and concepts presented in this chapter
a. A market that makes it possible to acquire or sell foreign currencies in order to cover currency risk exposure.
b. Actions taken by a central bank to offset the impact on bank reserves, deposits and interest rates of government purchases and sales of currencies.
c. An agreement to deliver a specified amount of currencies, securities or other goods or services at a set price on a given future date.
d. A condition prevailing in international markets where the interest-rate differential between two nations matches the forward discount or premium on their two currencies.

Question

Using the the description or the definition below, identify each of the key terms and concepts presented in this chapter
a. A market that makes it possible to acquire or sell foreign currencies in order to cover currency risk exposure.
b. Actions taken by a central bank to offset the impact on bank reserves, deposits and interest rates of government purchases and sales of currencies. 
c. An agreement to deliver a specified amount of currencies, securities or other goods or services at a set price on a given future date.
d. A condition prevailing in international markets where the interest-rate differential between two nations matches the forward discount or premium on their two currencies.

Quizplus · Accepted Answer

The Answer of Using the the description or the definition below, identify each of the key terms and concepts presented in this chapter
a. A market that makes it possible to acquire or sell foreign currencies in order to cover currency risk exposure.
b. Actions taken by a central bank to offset the impact on bank reserves, deposits and interest rates of government purchases and sales of currencies. 
c. An agreement to deliver a specified amount of currencies, securities or other goods or services at a set price on a given future date.
d. A condition prevailing in international markets where the interest-rate differential between two nations matches the forward discount or premium on their two currencies.

Using the The Description or the Definition Below, Identify Each