International Economic Relations

In primary markets, first time issued shares to be publicly traded in stock markets is considered as

The price at which one can enter into a contract today to buy or sell a currency 30 days from now is called a

Derivatives are financial instruments that:

Present low levels of risk and are used by people who otherwise couldn't purchase the financial assets.

When used correctly, can actually lower risk.

Should only be used by people seeking high returns from high risk.

All of the answers are correct

None of the answers is correct

The value of a derivative contract is ultimately determined by:

The name of the multinational association organized to promote exchange rate stability and to facilitate the international flow of currencies is the

International Monetary Market (IMM).

International Finance Corporation (IFC).

International Trade Administration (ITA).

International Monetary Fund.

None of the options

As a result of the Bretton Woods Agreement,

The Special Drawing Right (SDR) became the international unit of account.

The dollar became the world benchmark for trading currency.

The United States was forced to redeem dollars for gold.

An international system of variable exchange rates was established.

Eurozone was established

Which of the following is a definition of multinational enterprises?

A company employing foreign nationals.

A company operating in only emerging economies.

A company headquartered in one country but having operations in other countries.

None of the above.

One type of the credit loans

According to the Fisher hypothesis, the nominal rate of interest consists of:

A stable real rate plus a variable risk premium

A stable real rate plus a variable liquidity premium

A stable real rate plus a variable inflation premium

A real rate plus a liquidity premium plus a risk premium

An inflation premium plus a liquidity premium

Where supply and demand are allowed to determine a country’s exchange rate, we say we have exchange rate is:

The par value system which came about as a result of the Bretton Woods conference fixed the member nations exchange rates against

Special drawing rights (DRSs) is currently

A weighted average of the exchange rates of several industrialized countries.

Based on the price of gold.

Based on the US dollar.

Based on the Euro.

Based on British pound

If SEK/AZN is 0.1799 and CHF/AZN is 1.5063. Calculate cross rate of CHF/SEK

If the nominal rate is 23% and inflation rate is 8%. Calculate the real rate.

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