Foreign Exchange Transactions MCQ (Multiple Choice Questions) PDF Download

The larger fluctuations in portfolio value of foreign exchange of financial institutions leads to

1. greater liquidity of assets
2. greater volatility of rates
3. lesser volatility of rates
4. lesser liquidity of assets

The services such as commercial trade transactions and positions in financial investments provided by financial institutions are classified as

1. trade services
2. investment services
3. agent services
4. commercial services

For a foreign exchange of specific currency, the non-hedged position is classified as

1. open position
2. close position
3. currency long position
4. currency short position

The position which came in to existence because of holding assets less than liabilities is considered as

1. net surplus in assets
2. net surplus in liabilities
3. net long in currency
4. net short in currency

The reasons for smaller exposure of foreign exchange than US money center are

1. regulations
2. prudent individuals
3. smaller size of assets
4. all of the above