1. The market in which currencies are bought and sold and in which currency prices are determined is called the _______
=> Foreign exchange market
2. The practice of insuring against potential losses that result from adverse changes in exchange rates is called ________
=> Currency hedging
3. ___________ is the instantaneous purchase and sale of a currency in different markets for profit.
=> Currency arbitrage
4. _________ is the purchase or sale of a currency with the expectation that its value will change and generate a profit.
=> Currency speculation
5. In a quoted exchange rate, the currency with which another currency is to be purchased is called the _________
=> Quoted currency
6. In a quoted exchange rate, the currency that is to be purchased with another currency is called the _________
=> Base currency
7. The exchange rate requiring delivery of the traded currency within two business days is called the __________
=> Spot rate
8. The exchange rate at which two parties agree to exchange currencies on a specified future date is called the _________
=> Forward rate
9. __________ is a contract requiring the exchange of an agreed-upon amount of a currency on an agreed-upon date at a specific exchange rate.
=> Forward contract
10. A ________ is the simultaneous purchase and sale of foreign exchange for two different dates.
=> Currency swap
11. Currency that trades freely in the foreign exchange market, with its price determined by the forces of supply and demand is called a _________
=> Convertible currency/ Hard currency
12. An international monetary system in which nations linked the value of their paper currencies to specific values of gold was called the ________
=> Gold standard
13. A system in which the exchange rate for converting one currency into another is fixed by international agreement is called a ________
=> Fixed exchange rate system
14. The ________ was an accord among nations to create a new international monetary system based on the value of the U.S. dollar.
=> Bretton Woods Agreement
15. The agency created by the Bretton Woods Agreement to provide funding for national economic development efforts is called the _______
=> World Bank
16. _________ was the agency created by the Bretton Woods Agreement to regulate fixed exchange rates and enforce the rules of the international monetary system.
=> The IMF
17. An exchange-rate system in which currencies float against one another with governments intervening to stabilize currencies at a particular target exchange rate is known as a __________
=> Managed float system
18. __________ is an exchange - rate system in which currencies float freely against one another, without governments intervening in currency markets.
=> Free float system
19. The exchange rate at which the bank will buy a currency is called a _________
=> Buy rate
20. А _________ is called the exchange rate at which the bank will sell a currency.
=> Ask rate
21. A ________ is a right, or option, to exchange a specific amount of a currency on a specific date at a specific rate.
=> Currency option
22. A ________ is a contract requiring exchange of a specific amount of currency on a specific date at a specific exchange rate with all of these conditions fixed and not adjustable
=> Currency Futures contract
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