QUESTION 15 When considering long-term foreign exchange fluctuations which of the following cause- effect relationships is true? options A. As inflation decreases, the real interest rate decreases and the currency weakens. B. When unemployment decreases, the local economy is stronger and the currency strengthens. C.Greater liquidity and smaller spreads lead to stronger local currency. D.Interest rate increases indicate weaker monetary policies which make a country less attractive to foreign investors and result in weaker local currencies. QUESTION 15(B) The inside market at a pure order driven exchange is 40 bid, 40.5 asked for ABC. Brokers then submit a limit buy order at 40.125, and a limit sell order at 40.425. If you then submit a small buy market order, at what price will your order be filled? options A.40 B. 40.625 C. 40.5 D.40.425 E. 40.125
QUESTION 15
When considering long-term foreign exchange fluctuations which of the following cause- effect relationships is true?
options
A. As inflation decreases, the real interest rate decreases and the currency weakens.
B. When
C.Greater liquidity and smaller spreads lead to stronger local currency.
D.Interest rate increases indicate weaker
QUESTION 15(B)
The inside market at a pure order driven exchange is 40 bid, 40.5 asked for ABC. Brokers then submit a limit buy order at 40.125, and a limit sell order at 40.425. If you then submit a small buy market order, at what price will your order be filled?
options
A.40
B. 40.625
C. 40.5
D.40.425
E. 40.125
Step by step
Solved in 2 steps