Most foreign exchange transactions are for _______. A. intervention by central banks. B. interbank trades between international banks or nonbank dealers. C. retail trade. D. purchase of hard currencies. | Homework.Study.com (2024)

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• Most interbank trades are _____. A. speculative or arbitrage transactions. B. simple order processing for the retail client. C. overnight loans from one bank to another. D. brokered by dealers.
• What is the role of commercial banks in international trade transactions?
• Which of the following (if any) are not financial intermediaries? A) Commercial bank B) Thrift institution C) Securities broker D) All are financial intermediaries
• What is the difference between the retail or client market and the wholesale or interbank market for foreign exchange?
• How are foreign exchange transactions between international banks settled?
• What are the major foreign exchange trading activities performed by financial institutions?
• Most foreign exchange is bought and sold: A) by governments. B) by tourists. C) in over-the-counter markets.
• a. What is the role of banking institutions in international trade besides financing? b. What other institutions are available to facilitate trade? Explain some of the programs each of these institutions offer in order to facilitate trade. c. What are s
• What are the major types of transactions or activities that result in demand for foreign currency in the spot foreign exchange market?
• The institutions of global finance are: A) Central banks, B) Commercial banks, C) Investment banks, D) All of the above are institutions of global finance.
• International Trade: What is the role of banks in a documentary credit enabled exchange?
• What are typical transaction fees on B2B trade exchanges (not credit card fees, but fees charged to sellers for brokering the transaction)?
• Secondary markets organized in a centralized physical location for transacting financial instruments are called: a. brokerage houses. b. over-the-counter markets. c, exchanges d. investment banks.
• Hedging With Currency Derivatives. Assume that U.S. firms that have no other foreign transactions anticipate the forward purchase transaction. What are possible ways to hedge the transactions accordin
• Which of the underneath is not an issue connected with international trade not encountered by domestic traders? a. One party in the trade has to be concerned about foreign exchange risk. b. No one legal authority has control over the transaction and leg
• Financial intermediaries include: A) securities brokers B) commercial banks C) securities dealers D) All of these
• A British bank has acquired a large number of dollars in its dealings with its clients. How could this bank use the interbank foreign exchange market if it was unwilling to continue holding these?
• Do forex trading broker websites personally accept the risk of most bets, and not enter the bets on the inter-bank forex market?
• What is the Over the Counter markets Select one a. stock exchanges b. a decentralized market not listed in an exchange c. FEDs foreign exchange market 2. What is the Leverage Ratio if Assets are 100
• Which of the following banking systems has membership of all commercial banks - state and national - in the United States? A. Federal Reserve System B. Eurosystem C. European System of Central Banks D. None
• How can currency traders at banks make so much money, when retail forex traders lose so much money? Is it due to being better informed?
• Which financial market trades the most money daily besides the forex market?
• Do most banks and/or credit unions have their broker-dealer license? If so, what do they use it for?
• Which major banks (or non-bank payment processors) are leading the way in e/m-commerce?
• A currency swap without the exchange of notional principal is most likely to be used in what situation? a. A company issuing a bond a company generating cash flows in a foreign currency b. A company arranging a loan c. A dealer trying to hedge d. A curre
• If you owned a firm that did business internationally, why would excess fluctuations in the foreign exchange value of the dollar make planning for business and financial transactions more difficult?
• Which of the following exchanges has brokers on the floor of the exchange assisting clients in buying and selling securities? I. The New York Stock Exchange (NYSE) II. Electronic Communication Netwo
• What will go wrong if institutions ask dealers to trade corporate bonds for them as a broker?
• Which of the following is a reason why Commercial Banks can facilitate International Trade? Select one: a. The exporter may not wish to accept credit risk of the importer. b. The government may impose exchange controls which prevent payment by the importe
• When comparing credit unions with commercial banks and savings institutions: A. credit unions are less able to quickly generate additional deposits. B. savings institutions and commercial banks can borrow from the central liquidity facility but credit uni
• If you owned a firm that did business internationally why would excess fluctuations in the foreign exchange value of the dollar make planning business and financial transactions more difficult? (Check
• How do broker-dealers supply liquidity to the market?
• A banking facility that can be located anywhere in the U.S. but must devote a majority of its transactions to international accounts is a(n): A. Edge Act B. IBF C. Representative office D. Joint Venture E. Bank holding company
• 1. A/an _____ facilitates the issuing and sale of bonds and for this service is paid a fee. a. commercial banker b. investment banker c. dealer d. broker 2. MedTech Corp stock was $50.95 per share at
• Financial middlemen include A)securities brokers B)securities dealers C)investment bankers D)all of these
• How are broker-dealer market-making roles of investment banking sales trading units such as Goldman different from broker-dealer roles of firms such as ICAP?
• What are Banker's Acceptances and why are they so popular in the international trade of goods?
• Which trading broker/dealer enables me to trade Forex without leverage and with access to an API?
• Banks find it necessary to accommodate their clients' needs to buy or sell FX forward, in many instances for hedging purposes. How can the bank eliminate the currency exposure it has created for itself by accommodating a client's forward transaction?
• How much money is required to open a forex trading account with big banks like Goldman Sachs, JP Morgan, Citibank, and UBS?
• Which banks don't trade credit default swaps?
• What are the roles played by exchanges, clearing houses, clearing exchange members, and non-clearing exchange members in the structure of futures contract transactions?
• a) What are cash management and cash collection? b) How do they affect the foreign exchange market {international}?
• What is not true about revolving credit lines? A. Offered by banks, brokerage houses, and other financial institution B. Most common in department stores and oil companies C. Form of open account credit D. Possible tax advantage
• The main purpose of an economy's financial system is to facilitate the transfer of funds from A)financial middlemen to financial intermediaries B)surplus spending units to deficit spending units C)primary claimholders to secondary claimholders D)lenders t
• What kinds of bonds do central banks buy from commercial banks?
• 1. What role does the central banking system play within the global marketplace? 2. Would you recommend any changes to the central banking system? Why or why not?
• Are there any "insiders" in the foreign exchange markets?
• Which of the following markets is the most stable? a. The market for corporate bonds. b. The real estate market. c. The market for Treasury bonds. d. The New York Stock Exchange. e. The Chicago Mercantile Exchange.
• Briefly describe each of the following financial institutions: a. commercial banks, b. investment banks c. mutual funds d. hedge funds
• Does US still permit banks and other financial institutions to regulatory jurisdiction shopping?
• Commercial banks that are not members of the Federal Reserve System will/will not borrow from the Fed, and are/are not subject to the Fed's reserve requirements?
• Which one of the following transactions is a source of cash? A. granting credit to a customer B. purchasing new machinery C. making a payment on a bank loan D. purchasing inventory E. accepting credit from a supplier
• Which of the following items would not be classified as cash equivalents? a. U.S. Treasury bills b. Trading securities c. Commercial paper d. Money market funds
• Which of the following is not a financial intermediary? A. New York Stock Exchange B. Washington Savings and Loan C. First National City Bank D. Merchants Savings Bank
• Banks and hedge funds are using computers and algorithms more and more to trade financial markets. Why aren't individual investors and traders more interested in automated trading?
• Which US broker-dealers enable the sale of publicly traded securities through the platforms of startups that are not themselves broker-dealers?
• Which retail trading firm or brokerage provides the most margin or borrowing for an individual's portfolio?
• Which of the following types of foreign banking operations would best suit the circ*mstance described? a. A major customer of a U.S. commercial bank requests a loan to finance growing export activity in Mexico. b. Management notices that an increasing n
• Firms that require funds from external sources can obtain them a) through financial institutions. b) from the central bank directly. c) by issuing T- bills. d) through the forex market.
• Explain what a swap broker would recommend each company do so the swap broker can structure a parallel loan arrangement with each company giving each a better net loan deal than it can get in the market, and the swap broker can realize a profit. US Co., I
• Concentration banking involves: a. using decentralized collection centers b. having a large balance at a large commercial bank c. having multiple accounts with a brokerage firm d. utilizing an investment banker for when trying to market both stocks and bo
• As commercial banks enter new lines of business such as brokerage, how much additional capital should be required? Should these new lines of business be insured by the FDIC? Why or why not? Give examples from today s financial marketplace.
• Is the asset purchase from Fed's QE basically a back door gift to banks and other financial institutions given that they control majority of assets?
• If an MNC has a net inflow in two currencies, then the MNCs' transaction exposure is ____ if the two currencies are ____ correlated. a. high; positively b. low; negatively c. high; negatively d. both A and B
• A large domestic bank with headquarters in New York City that provides international lending and payments services to large, multinational business firms is most likely to be A. Money Center bank B.
• How do banks earn profit on spot trading in the Forex market? What are the opportunities and risks they face in Forex spot trading?
• During the financial crisis of 2007-2009, the Fed's discount lending expanded through the creation of that made loans to a variety of institutions including (Choose all that apply) A. investors that purchase asset-backed securities. B. secondary dealers
• Why and how do central banks intervene in foreign exchange markets under the managed floating exchange rate system?
• Describe the steps in a typical banker's acceptance transaction. Why is the banker's acceptance form of financing ideal in foreign transactions?
• Is there a commercial bank or brokerage firm that will let me withdraw more than $1K daily from an ATM?
• What are the differences between community banks, regional banks, and money center banks? Contrast the business activities, locations, and markets of each of these bank groups.
• True or false? Most transactions in our financial markets are actually secondary transactions.
• Would installing an adapted version of blockchain between all financial institutions that do EFT and currency exchange expose criminal financial transactions?
• What are the differences between community banks, regional banks, and money center banks? Contrast the business activities, location, and markets of each of these bank groups.
• Since India is now heavily into cashless transactions like bank to bank transfers, credit cards, Paytm etc, are we printing less currency notes?
• Why are banker's acceptances so popular for international transactions?
• Finance companies differ from commercial banks, savings institutions, and credit unions in that they: a. normally do not obtain funds from deposits. b. focus on financing acquisitions by companies. c. focus on providing residential mortgages. d. use most
• Which of the following duties is performed by the clearinghouse? a. Holding margin deposits b. Negotiating prices between buyers and sellers c. Setting prices for securities d. Lending money to meet margin requirements e. None of the above
• Which of the following statements is/are Incorrect? I. Foreign exchange markets are a relatively recent phenomenon, beginning with the agreement at Bretton Woods. II. Dealers in foreign exchange departments at large international banks act as market mak
• Under what conditions can companies use hedge accounting to account for a foreign currency option used to hedge a forecasted foreign currency transaction?
• What are the major sources of funds for commercial banks in the United States? What are the major uses of funds for commercial banks? or each of your answers, specify where the item appears on the balance sheet of a typical commercial bank (Assets or Lia
• The standard size foreign exchange transactions are for ______. A. $10 million U.S. B. $1 million U.S. C. 1 million.
• Which of the following type of economic groups has never been subject to Federal Reserve regulations? a.consumer finance companies. b.retailers. c.commercial banks. d.credit unions. e.none of the above.
• a) Describe how investment bank services differ from commercial bank services. b) Why do investment banks sometimes form international syndicates? c) What do investments banks sell high globally? d) Are all investment banks alike; if not, how do th
• Would you rather do Forex trading or cryptocurrency trading?
• Which of the following statement is incorrect? I. Foreign exchange markets are a relatively recent phenomenon, beginning with the agreement at Bretton Woods. II. Dealers in foreign exchange departments at large international banks act as market makers a
• The Glassminus-Steagall Act: _ _ _ _ _ A) separated the activities of commercial and investment banks. B) was intended to regulate the activities in the primary market. C) was intended to regulate
• Which of the following bank legislation separated the commercial banking industry from the securities (investment banking) industry? a. Depository Institutions Deregulation and Monetary Control Act (1980). b. McFadden Act (1927). c. Bank Holding Compan
• Which of the following is NOT a primary center of foreign-exchange trading? A)New York B)London C)Munich D)Tokyo
• Which banks or credit unions offer an API to retail customers that would allow them to automate various banking functions and transactions?
• A bank chartered by the federal government in the United States is known as a: A. National bank B. Universal bank C. Merchant bank D. Member bank E. None of the above
• What is the percentage of trades done by financials institutions and how much com from retail traders?
• Is it legal to buy bitcoins from India and trade them in foreign exchange?
• Which of the following securities is not a money market security? a) Ba-rated corporate bonds b) Treasury bills c) certificates of deposit d) banker's acceptance e) P2-rated commercial paper
• Which market area has the highest future potential for inter-dealer brokers? Taking into account the digitalisation of financial transactions.
• Explain the reason (or the ultimate purpose) the commercial banks are legally mandated to hold funds in exchange settlement accounts with the RBA.
• The _____ acts as a temporary lender to credit unions. A. world bank B. central liquidity facility C. federal home loan bank D. national credit union administration
• The key federal regulators and organizations involved with the commercial banking industry include which of the following? I. Office of Comptroller of Currency II. Federal Deposit Insurance Corporation III. Office of Thrift Supervision IV. Central Liquidi
• Which brokerage firm is the best to trade in currency derivatives?