Section 5- IBUS 401 || Graded A+.

Section 5- IBUS 401 || Graded A+.
A dealer provides the following quotes:
CNY/HKD = 0.8422
CNY/ZAR = 0.9149
CNY/SEK = 1.0218
What is the ZAR/HKD most closest to?


a) 1.2978


b) 0.9205


c) 1.0864 correct answers b) 0.9205


All else equal, currency pairs that have greater order costs will have lower bid/ask spreads.


True or False? correct answers False


In the USD/EUR exchange rate, the ____ is the base currency and the ____ is the price currency.
Hint: answers are ISO codes. correct answers USD, EUR


If the bid/ask quote from a dealer was 0.7702/04 CAD/USD, then the bid/ask quote in
USD/CAD would be closest to:


a) 1.2984/80


b) 1.2982/82


c) 1.2980/84 correct answers c) 1.2980/84

, An exchange rate between two currencies has increased to 1.4500. If the base currency has
appreciated by 8% against the quote currency, the initial exchange rate (i.e., the old rate) was
closest to:


a) 1.566


b) 1.334


c) 1.343 correct answers c) 1.343


A dealer based in NYC provides a spot exchange rate quote of 0.7700 CAD/USD to a client in
Quebec, Canada. The inverse of 0.7700 is 1.2987. From the perspective of the Canadian client,
the most accurate statement is that the:


a) indirect exchange rate is equal to 1.2987.


b) direct exchange rate is equal to 1.2987


c) direct exchange rate quotation is equal to 0.7700 correct answers b) direct exchange rate is
equal to 1.2987


What is the exchange rate 1.1050 EUR/USD in pips?


a) 11,050


b) 1,105.0


c) 110.50 correct answers a) 11,050