Question Details

The main participants in the international money market 



1. The main participants in the international money market are: 
A) consumers. 
B) small firms. 
C) large corporations. 
D) small European firms needing European currencies for international trade.


2. A syndicated Eurocredit loan: 
A) represents a loan by a single bank to a syndicate of corporations. 
B) represents a loan by a single bank to a syndicate of country governments. 
C) represents a direct loan by a syndicate of oil-producing exporters to a less developed
country. 
D) represents a loan by a group of banks to a borrower. 
E) A and B


3. The international money market is primarily served by: 
A) the governments of European countries, which directly intervene in foreign currency 
markets. 
B) government agencies such as the International Monetary Fund that enhance 
development of countries. 
C) several large banks that accept deposits and provide loans in various currencies. 
D) small banks that convert foreign currency for tourists and business visitors.

 4. Assume that a bank's bid rate on Swiss francs is £0.25 and its ask rate is £0.26. Its bid-ask percentage spread is:
a. 4.00%.	                     c. about 3.85%.
b. 4.26%.	                     d. about 4.17%.

5. The forward rate is the exchange rate used for immediate exchange of currencies.
a. true.	
b. false.



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