Q1. Because of the uncertainty involved in forward contracts, dealers will quote bid-ask spreads on longer-term forward contracts that are: A) narrower. B) wider. C) shorter.
Q2. A bank in the U.S. is quoting a bid of 0.9350 USD/CAD and an ask of 0.9400 USD/CAD. For a direct U.S. quote, what is the percentage spread? A) 0.5319%. B) 5.5500%. C) 0.0053%.
Q3. Suppose the spot USD/CHF exchange rate quotation is 0.7910 - 0.7917. The percentage bid-ask spread on the USD is: A) 0.0007%. B) 8.8840%. C) 0.0884%.
Q4. A bid-ask spread on a foreign currency will be narrower the: A) more actively traded the currency and the larger the transaction. B) more actively traded the currency and the smaller the transaction. C) less actively traded the currency and the smaller the transaction.
Q5. Which of the following will cause a currency's bid-ask spread to widen? The: A) bid-ask spread is for a small transaction rather than a large one. B) government has recently become more stable. C) bid-ask spread is a spot quote rather than a forward quote.
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发表于 2009-1-13 11:30
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