Fin4604 Section 5 Questions And Correct
Answers
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: direct exchange rate is equal to 1.2987
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: 1.2980/84
Currency Pair______Current Spot Rate_____Expected Spot Rate in 1 Yr USD/EUR 1.1701
1.1619
CHF/USD 0.9900 0.9866
USD/GBP 1.3118 1.3066
Based on this, the CHF/EUR cross-exchange rates is closest to [ Select ] .
The Euro (EUR) is expected to move by [ Select ] against the dollar in the next year.
The Swiss Franc (CHF) is expected to [ Select ] .
Ranking the foreign currencies from appreciating the most to appreciating the least relative to the
USD, the order is: [ Select ] 1.1584
+0.70% percent
appreciate relative to GBP
, Fin4604 Section 5 Questions And Correct
Answers
EUR, GBP, CHF
What will be the effect on the direct exchange rate if the domestic currency appreciates?
Decreases
An executive from Switzerland checked into a hotel room in Spain and was told by the manager
that 1 EUR will be 1.2983 CHF. From the executive's perspective, an INDIRECT exchange rate
would be: 0.7702 EUR per CHF
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: 1.343
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? 0.9205
Answers
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: direct exchange rate is equal to 1.2987
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: 1.2980/84
Currency Pair______Current Spot Rate_____Expected Spot Rate in 1 Yr USD/EUR 1.1701
1.1619
CHF/USD 0.9900 0.9866
USD/GBP 1.3118 1.3066
Based on this, the CHF/EUR cross-exchange rates is closest to [ Select ] .
The Euro (EUR) is expected to move by [ Select ] against the dollar in the next year.
The Swiss Franc (CHF) is expected to [ Select ] .
Ranking the foreign currencies from appreciating the most to appreciating the least relative to the
USD, the order is: [ Select ] 1.1584
+0.70% percent
appreciate relative to GBP
, Fin4604 Section 5 Questions And Correct
Answers
EUR, GBP, CHF
What will be the effect on the direct exchange rate if the domestic currency appreciates?
Decreases
An executive from Switzerland checked into a hotel room in Spain and was told by the manager
that 1 EUR will be 1.2983 CHF. From the executive's perspective, an INDIRECT exchange rate
would be: 0.7702 EUR per CHF
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: 1.343
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? 0.9205
