Which of the following handles the majority of all foreign-exchange activities?
A) multinational enterprises
B) commodities exchanges
C) commercial banks
D) regional banks
Answer: C
Learn More :
Multinational Business Chapter 8
- Which of the following is LEAST relevant to being designated by Euromoney magazine as a top foreign-exchange dealer?
- An investor sells Japanese yen which is yielding a low interest rate and uses the proceeds to buy Swiss francs that yield a higher interest rate. Which term best describes the investor's actions?
- Which of the following best explains why migrant workers in Dubai send money back home?
- How does arbitrage differ from speculation?
- Which of the following is an example of interest arbitrage?
- Ryan, a foreign-exchange dealer, sold U.S. dollars for Swiss francs in the U.S., then sold Swiss francs for Japanese yen in Switzerland, and then sold the Japanese yen for U.S. dollars in the U.S. Ryan hopes that he will end up with more U.S. dollars than when he began. Which term best describes Ryan's actions?
- Which of the following best describes arbitrage?
- Anita, an employee at ABX Partners, a hedge fund firm, has purchased euros because she believes that the euro will strengthen against other currencies. Which term best describes Anita's activities?
- A speculator is someone who ________.
- A letter of credit that provides an exporter with the guarantee of another bank in addition to the importer's bank is called ________.
- An irrevocable letter of credit ________.
- A document requesting payment 30 days after delivery is known as a ________.
- Gomez Enterprises, a firm based in Mexico City, exported 1,000 circuit boards to Taylor Industries, a firm based in Chicago. Taylor received a document from Gomez that requests immediate payment for the goods. Gomez has most likely sent a ________.
- In a ________, one party directs another party to make payment.
- Which of the following is NOT a reason a company would deal in foreign exchange?
- If a company from Country A decides to sell merchandise to a company from Country B, then the company from Country A ________.
- Companies most likely use the foreign-exchange market to ________.
- Companies most likely use the foreign-exchange market to ________.
- When selecting a commercial and/or investment bank to deal in foreign exchange, corporations are most likely to use ________.
- Which of the following is NOT one of the top exchanges that trade in foreign currency futures and options?
- Stella, who works and lives in San Diego, wants to send money to her mother who lives in a small village south of Puerto Vallarta, Mexico. Stella typically uses Western Union to handle the transaction. Which of the following is the most likely reason that Stella uses Western Union?
- Compared with a forward contract, a futures contract ________.
- Why are options most likely so attractive to companies?
- Which of the following is most likely true regarding options?
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