A. greater liquidity of assets
B. greater volatility of rates
C. lesser volatility of rates
D. lesser liquidity of assets
Related Mcqs:
- The services such as commercial trade transactions and positions in financial investments provided by financial institutions are classified as ____________?
A. trade services
B. investment services
C. agent services
D. commercial services - The theory which considers the change in exchange rate with the fluctuations in inflation rates is classified as __________?
A. liquidated power parity
B. purchasing power parity
C. selling power parity
D. volatile power parity - The reasons for smaller exposure of foreign exchange than US money center are ____________?
A. regulations
B. prudent individuals
C. smaller size of assets
D. all of the above - For a foreign exchange of specific currency, the non-hedged position is classified as _____________?
A. open position
B. close position
C. currency long position
D. currency short position - In equilibrium position, the spread between foreign and domestic rate of interest must be equal to spread of ___________?
A. domestic rates
B. forward and spot exchange rates
C. forward rate
D. spot rates - The theory according to which the difference between expected appreciation and foreign interest must be equal to domestic interest rate, is called _____________?
A. interest rate parity theorem
B. appreciation parity theorem
C. domestic parity theorem
D. foreign interest parity theorem - The position which came in to existence because of holding assets less than liabilities is considered as ____________?
A. net surplus in assets
B. net surplus in liabilities
C. net long in currency
D. net short in currency - The inflation rate in United States is added into real rate of interest to calculate ____________?
A. quoted interest rate in United States
B. nominal interest rate in United States
C. interest rate in United States
D. discount rate of country - The position which came in to existence because of holding assets more than liabilities is considered as _____________?
A. net long in currency
B. net short in currency
C. net surplus in assets
D. net surplus in liabilities - In United States, the JPMorgan Chase is considered as ______________?
A. largest foreign exchange trading
B. smaller foreign exchange trading
C. largest bond holder
D. smaller bond holder
