Which financial instrument provides a buyer the right to purchase or sell a fixed amount of currency at a prearranged price, within a few days to a couple of years ?

Related Mcqs:

1. Suppose there are three identical vases available to be purchased. Buyer 1 is willing to pay Rs30 for one, buyer 2 is willing to pay Rs25 for one, and buyer 3 is willing to pay Rs20 for one. If the price is Rs25, how many vases will be sold and what is the value of consumer surplus in this market ?

   A. Three vases will be sold, and consumer surplus is Rs80
   B. One vase will be sold, and consumer surplus is Rs5.
   C. One vase will be sold, and consumer surplus is Rs30.
   D. Three vases will be sold, and consumer surplus is Rs0.
   E. Two vases will be sold, and consumer surplus is Rs5.

2. The essential feature of a _______ is that it immediately fixed the rate at which a specified amount of one currency is to be delivered in exchange for a specific amount of another at a future date ?

   A. forward contract
   B. spot contract
   C. money contract
   D. bid contract

3. What is called the excess of purchase price over fair market value of net assets that are acquired under the purchase method of accounting ?

   A. Bonus
   B. Up level
   C. Goodwill
   D. Upgradation

4. Taxes creates a wedge between the sales price and purchase price that prevents the price system equating ____ and ______?

   A. marginal costs, marginal benefits
   B. demand, supply
   C. marginal cost, marginal revenue
   D. marginal cost, average cost

5. What is called that bank which regularly accepts foreign currency-denominated deposits and makes foreign currency-denominated deposits and makes foreign currency loans ?

   A. Eurobank
   B. Foreign bank
   C. International Bank
   D. Multinational Bank

6. If export contracts are written in terms of foreign currency and import contracts are denominated in domestic currency a depreciation of the dollar during the currency contract period ?

   A. should increase the dollar value of exports
   B. should not have any effect on the dollar value of U.S imports
   C. must increase the balance of trade
   D. All of the above

7. With fixed exchange rates and no private currency flows, when the central bank buys domestic currency the domestic money supply is ?

   A. increased
   B. unaffected
   C. reduced
   D. None of these

8. The price of one country’s currency in terms of another country’s currency is the ?

   A. exchange rate
   B. balance of trade
   C. terms of trade
   D. currency valuation

9. The price of one country’s currency in terms of another country’s currency is the ?

   A. exchange rate
   B. balance of trade
   C. terms of trade
   D. currency validation

10. A buyer’s willingness to pay is that buyer’s ?

    A. minimum amount they are willing to pay for a good
    B. producer surplus.
    C. consumer surplus
    D. maximum amount they are willing to pay for a good
    E. none of these answers