Which of the following statement is true?
1. Rs. 63/USD is direct quote in India.
2. Rs. 63/USD is direct quote in USA.
3. 1 Rupee = 0.0158 dollars is indirect quote in India.
4. 1 Rupee = 0.0158 dollars in indirect quote in USA
If rf and rd are the interest rates of a foreign country and domestic country, respectively and if SDF and SDF are spot exchange rate and forward exchange rate between the countries F and D, the interest rate parity is indicated by
Which of the following statement is correct? Statement I In currency quotation, the first currency is the base Currency and the second currency is known as the quoted currency. Statement II A currency pair is generally represented by using a hyphen or an oblique.
Match the correct combination for Assertion and
Reason as argued by Shapiro and Timan. Assertion (A) Management decisions to insure or hedge asset appear at best neutral mutation. Reason (R) The price of systematic risk is identical for all the participants in the financial
market.
In international financial environment for settlement of debts there is a practice known as netting practice. The netting practice pertains to which one of the following?
The given statements are related to financial derivatives. Choose the correct answer for the statements being correct or incorrect. Statement I A speculator will gain, if he sells foreign currency under a forward contract, when the spot price is higher than the forward price. Statement II In currency futures, intra currency spread exists when a speculator buys/sells the same currency for two delivery dates.
Which of the following statement is correct?
1. The interest rate in international credit market is depended on the LIBOR rate.
2. LIBOR varies in countries due to difference in the supply demand of a particular currency.
3. LIBOR is a fixed interest rate at which banks give loans to each other.