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Foreign Exchange Essentials
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Foreign Exchange Essentials
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25 Questions

1. Revaluation can be hedged - while ___________ cannot be hedged

2. If the Mexico rate is 5.25%/year and the US is 0.25%/year - What is the rate that would be used to calculate the forward rate?

3. Direct quote- _____________=USD

4. If you are an European planning a trip to America - which rate do you want? 1.40 or 1.60?

5. When looking at a currency chart - you need to know if the currency is quoted Directly or Indirectly to be able to describe...

6. Give an example of one way to hedge a price increase in gas prices...

7. The offset of revaluation is recorded to...

8. If you are an American planning a trip to Europe - which exchange rate would you rather have to convert your US Dollars to Euro? 1.40 or 1.60?

9. A forward happens in...

10. The rules for adding or subtracting forward points depend on whether it is quoted...

11. B/S rate is used for revaluation of foreign currency transaction to...

12. Treasury is responsible for banking requirements - funding for the business and managing...

13. In a downward slope that represents USD-JPY relationship a _____________ means that if you bough Japanese Yen at point A you made money at point B

14. What is Fair Value hedge program used for?

15. An ___________ expresses the value of one currency relative to another

16. What are non-monetary accounts?

17. How does treasury accomplish its purpose?

18. In a EUR-USD relationship - when arrow is going down - means Euro weakens and US Dollar...

19. Whether the quote was indirect or direct - they are all stored as ______ in Oracle

20. In a GBP-USD relationship - when the line in a graph is upward slope it means the __________ overtime because the exchange rate is getting bigger

21. What is cash flow used for?

22. Hedge rate is constant throughout quarter while _______________ changes throughout quarter

23. If 1 Share = 10 USD and 1 CASE = 30 USD - then 1 share =?

24. What would happen if the US interest rate was bigger than Mexico?

25. Forward points is equal to...

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