The essential feature of a ____ is that it immediately fixed the rate at which a specified amount of one currency is to be delivered in exchange for a specific amount of another at a future date.
| A. | forward contract |
| B. | spot contract |
| C. | money contract |
| D. | bid contract |
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Option: A Explanation : Click on Discuss to view users comments. |
_____ is said to exist when the formation of a regional trading group leads to the reduction of trade with nonmember countries in favor of member countries.
| A. | trade creation |
| B. | trade diversion |
| C. | trade exclusion |
| D. | trade distortion |
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Option: B Explanation : Click on Discuss to view users comments. |
Small nations whose trade and financial relationships are mainly with a single partner tend to utilize
| A. | pegged exchange rates |
| B. | freely floating exchange rates |
| C. | managed floating exchange rates |
| D. | crawling exchange rates |
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Option: A Explanation : Click on Discuss to view users comments. |
Suppose that Boeing is to receive payment in euros in 6 months and wants to engage in hedging. The firm would _____ euros on the 6-month forward market in order to protect itself from a/an _____ of the euro.
| A. | sell; appreciation |
| B. | sell; depreciation |
| C. | buy; depreciation |
| D. | buy; appreciation |
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Option: B Explanation : Click on Discuss to view users comments. |
