1. A __________ draft would be paid on demand; whereas a bank would pay a __________ draft at maturity as stated in the __________.

a. time; sight; bill of lading

b. sight; time; bill of lading

c. time; sight; letter of credit

d. sight; time; letter of credit

 

2. Under freely floating exchange rates a government would 

a. do nothing.

b. sell assets to foreign investors for foreign exchange to buy the domestic currency.

c. buy assets to foreign investors for domestic currency.

d. intervene in the markets for the benefit of its exporters

 

3. A British importer of U.S. computer equipment would take which action in the foreign exchange markets?

a. supply dollars 

b. demand dollars

c. demand pounds d. both a and c above

e. none of the above

 

4. The Eurocurrency market serves as a place to store excess liquidity for multinational corporations, countries and individuals because of all of the following except: 

a. Lack of regulation allows investors to hold debt securities in bearer form.

b. The presence of a withholding of tax.

c. Investments earn higher returns.

d. Eurocurrency deposits are highly liquid because of very short maturities with nearly 90 percent of deposits being less than 180 days. 

 

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    • 1. A British importer of U.S. computer equipment would take which action in the foreign exchange markets?
      a. supply dollars

      b. demand dollars
      c. demand pounds d. both a and c above
      e. none of …

    • 1. A __________ draft would be paid on demand; whereas a bank would pay a __________ draft at maturity as stated in the __________.
      a. time; sight; bill of lading
      b. sight; time; bill of lading
      c. …

    • 1. A British importer of U.S. computer equipment would take which action in the foreign exchange markets?

      a. supply dollars

      b. demand dollars

      c. demand pounds d. both a and c above

      e. none of the …