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- 1. Multiple Choice
$2:£ or 2 $/£ or 2$ = £ means that ___ equals ____ .
$2, £1
£2, $1
- 2. Multiple Choice
$2:£ means that ___ is the counter currency and ____ is the base currency.
$, £
£, $
- 3. Multiple Choice
Generally, the _____ country is the base currency and the _______ country is the counter currency.
Home, Foreign
Foreign, Home
- 4. Multiple Choice
Banks buy the counter currency ____ and sell it ____ .
High, Low
Low, High
- 5. Multiple Choice
If we are a UK cy and we are making a payment in $, but we don't have $, so the UK bank will sell me the counter currency ($).
And they will sell it to me at the ____ rate.
Low
High
- 6. Multiple Choice
If we are a UK cy and will receive $. The UK bank will buy counter currency ($) from me at ____ rate.
High
Low
- 7. Multiple Choice
Translating Currencies:
If you are given the counter currency:
_____ the amount by the exchange rate
Divide
Multiply
- 8. Multiple Choice
A UK company has to pay $1,500. Spot rate is £ : $1.5.
How much is it in £?
£2,250
£1,000
- 9. Multiple Choice
A UK company has to pay £1,000 in $. Spot rate £ : $1.5.
How much is it in $?
$1,500
$ 667
- 10. Multiple Choice
If we are a UK cy and we are making a payment $100, but we don't have $, so the UK bank will sell me the counter currency ($).
Spot rate: £: $2+-0.1 …. (= £: $1.9 - $2.1)
How much it will be in £?
£52.63
£47.6
- 11. Multiple Choice
If we are a UK cy and we will receive $800.
The UK bank will buy counter currency ($) of me.
Spot rate: £: $1.8 - 1.9
How much will the bank give me in £?
£421
£444
- 12. Multiple Choice
We are a UK Co. We are going to receive $1,000 in 6m.
We will want to fix the exchange rate now.
We will ask the bank what the Forward rate for 6m is.
Forward rate is $1.7 - 1.8.
So the bank will give me ____ for $1,000:
£555
£588
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