首页
外语
计算机
考研
公务员
职业资格
财经
工程
司法
医学
专升本
自考
实用职业技能
登录
外语
The forward market also provides facilities for forward currency transactions. This is a means of enabling the importer or expor
The forward market also provides facilities for forward currency transactions. This is a means of enabling the importer or expor
admin
2012-01-26
63
问题
The forward market also provides facilities for forward currency transactions. This is a means of enabling the importer or exporter to agree a rate of exchange, now, at which a foreign currency will be exchanged for sterling at a future date, usually one, two, three or six months ahead but sometimes one or two years. This rate is fixed regardless of what might have happened to the rate of exchange in the meantime and is particularly useful in an era of floating, and potentially volatile, exchange rates. If, for example, a British importer of US machines which cost $ 3,000 each has to pay in one month’s time he may prefer to buy the currency now for actual delivery in one month’s time. With a current rate of $2.00 to the 1 pound the one month rate may be at a two cent premium ($1.98) or 2 cents dearer than the spot rate. These purchases will therefore cost the importer an additional £ 15 but at least he knows exactly how much it will cost him whatever happens to exchange rates. If the pound had been devalued or floating down during the month the cost could have horn a lot more than £ 15.
Theoretically there are two alternatives to buying forward:
1) To buy $3,000 now at the spot rate, pay interest on any loan to pay for the purchase and invest the dollars for one month.
2) Pay the spot rate in one month’s time whatever the rate might be.
The facility to buy or sell a currency forward, therefore, enables the importer to fix a definite price which will not be affected by fluctuations in exchange rates.
Forward exchange markets were temporarily disrupted in 1974 by the collapse of a West German bank which failed to meet its foreign currency obligations. As the foreign exchange markets depend so much on confidence, this collapse led to a temporary contraction in the forward market. However, it has now regained much of the ground lost, indeed in an era of floating rates the forward market is of even more importance to traders in insuring themselves against loss through exchange rate fluctuations.
How are the forward transactions made in the forward market?
选项
A、When the dealers see marginal differences in the rate of exchange in different markets, they can buy the second currency in one market and selling in another.
B、Most of the dealing in the foreign exchange market is to satisfy the immediate requirements of traders.
C、The dealers can close a deal by agreeing the rate of exchange in the meantime in this market and then delivery of currency is specified to take place at a future date.
D、The markets respond to the normal laws of supply and demand of currency.
答案
C
解析
第一段第二句指出This is a means of enabling the importer or exporter to agree a rate of exchange,…意指远期市场的远期外汇交易使进出口商协定好汇率,并按照事先协定汇率,在约定的未来的某段时期后,进行外汇交易。此句说清楚了远期外汇交易是如何进行的。
转载请注明原文地址:https://kaotiyun.com/show/RdYd777K
本试题收录于:
FECT综合(现代金融业务)题库金融英语(FECT)分类
0
FECT综合(现代金融业务)
金融英语(FECT)
相关试题推荐
Americanswithsmallfamiliesownasmallcaroralargeone.Ifbothparentsareworking,theyusuallyhavetwocars.Whenthe
In1826,aFrenchmannamedNiepceneededpicturesforhisbusiness.Buthewasnotagoodartist.Soheinventedaverysimplec
Intheworld,soccerorfootballisthemostpopularsport.ThisisbecausemanycountrieshavewonderfulteamsfortheWorldCu
BufordisthesmallesttownintheUS.ThetownishighinthemountainsanditliesontheroadbetweenNewYorkandCalifornia
Althoughoneaccountantmistakestowritedownacreditsaleasacashsale,thefigureonthedebitsideofthetrialbalancei
Creditinstrumentsareissuesbywhichinvestorssupplypermanentfinancingtofirmsorotherborrowersincludinggovernments.
Howmanyyearsrepaymentscheduledotheyworkon?
CheckingaccountsIntheUnitedStates,checkingaccountsareavailableonlyatcommercialbanks.Commercialbanksspecializ
risks,savings,financial,funds,deposits,heart,complex,subject,appear,repay,as,lose,reserve,ret
A、Theaimofsuchcontrolistoraisethedemandforforeignexchange.B、Theaimofsuchcontrolistodecreasethesupplyoffo
随机试题
Theprofessoractsasifhe______akingofagreatkingdom.
引起大疱性鼓膜炎的最主要病原是
A、FC活髓切断术B、直接盖髓术C、根尖诱导成形术D、间接盖髓术E、氢氧化钙活髓切断术;下列情况出现时选择以上何种治疗方法年轻恒牙牙髓坏死,慢性根尖病变
甲乙两国就海洋的划界一直存在争端,甲国在签署《联合国海洋法公约》时以书面声明选择了海洋法法庭的管辖权,乙国在加入公约时没有此项选择管辖的声明,但希望争端通过多种途径解决。根据相关国际法规则,下列选项正确的是:(2014年卷一97题)
内因是事物发展的根据,它是第一位的,它决定着事物发展的基本趋向。()
大革命失败的原因有()
网络互联的功能可以分为两类,下列属于基本功能的是()。
Oneofthemanytheoriesaboutalcoholismisthelearningandreinforcementtheory/whichexplainsalcoholismbyconsideringalco
Giventhechoicebetweenspendinganeveningwithfriendsandtakingextratimeforhisschool-work,AndyKliseadmitshewould
Accordingtothe1stparagraph,expertshaveinterestsin______.Copingwithnewsituationsmayresultin______.
最新回复
(
0
)