International Finance at Universität Frankfurt Am Main | Flashcards & Summaries

Select your language

Suggested languages for you:
Log In Start studying!

Lernmaterialien für International Finance an der Universität Frankfurt am Main

Greife auf kostenlose Karteikarten, Zusammenfassungen, Übungsaufgaben und Altklausuren für deinen International Finance Kurs an der Universität Frankfurt am Main zu.

TESTE DEIN WISSEN

Difference between foreign exchange dealers and brokers:

Lösung anzeigen
TESTE DEIN WISSEN

FX dealer: want to trade with Euro, Dollars, etc. 


FX brokers: platform with participants that bring matching partners together.

Lösung ausblenden
TESTE DEIN WISSEN

Foreign exchange customers

Lösung anzeigen
TESTE DEIN WISSEN
  • Corporate customers
  • Retail customers
  • Financial institutions
  • Algorithmic, high-frequency traders
Lösung ausblenden
TESTE DEIN WISSEN

Many currencies of developed countries trade freely in the world’s foreign exchange markets (e.g., the euro, yen, dollar, pound) and their value is determined by market forces, demand and supply.

Lösung anzeigen
TESTE DEIN WISSEN

TRUE!

Lösung ausblenden
TESTE DEIN WISSEN

Which one is TRUE?

Fixed rate system is…

Lösung anzeigen
TESTE DEIN WISSEN
  • no separate legal tender (dollarisation)
  • Currency boards (ex. Bulgaria, Hong Kong)
  • Conventional pegs (ex. Saudi Arabia)
Lösung ausblenden
TESTE DEIN WISSEN

Name exchange rate systems belonging to limited flexibility:

Lösung anzeigen
TESTE DEIN WISSEN
  • Target Zones (Denmark, Bolivia)
  • Managed floats (Thailand)
Lösung ausblenden
TESTE DEIN WISSEN

Name the flexible exchange rate system:

Lösung anzeigen
TESTE DEIN WISSEN

Independently floating:

Example: US, UK, Japan

Lösung ausblenden
TESTE DEIN WISSEN

Define "No separate legal tender"!

Lösung anzeigen
TESTE DEIN WISSEN

One kind of exchange rate regime is the No Separate Legal Tender regime. This can take the form of a currency union in which participating nations adopt a common currency, giving up their individual ones in the process. The second form is known as dollarization, when a nation decides to adopt the currency of another nation as its official currency.

Lösung ausblenden
TESTE DEIN WISSEN

Define a "Currency board"!

Lösung anzeigen
TESTE DEIN WISSEN
  • A currency board is an extreme form of a pegged exchange rate.
  • Often, this monetary authority has direct instructions to back all units of domestic currency in circulation with foreign currency.
  • Currency boards offer stable exchange rates, which promote trade and investment.
  • In a crisis, a currency board can cause substantial damage by restricting monetary policy.
Lösung ausblenden
TESTE DEIN WISSEN

What's a direct quotation?

Lösung anzeigen
TESTE DEIN WISSEN

How many units of domestic currency per unit of foreign currency?

Example:
For a US investor, 1.60 $/£ is a direct quote.

Lösung ausblenden
TESTE DEIN WISSEN

What's an indirect quotation?


Lösung anzeigen
TESTE DEIN WISSEN

How many units of foreign currency per unit of domestic currency?

Example:
For a US investor, 0.625 £/$ is an indirect quote.

Lösung ausblenden
TESTE DEIN WISSEN

What does the direct quotation imply?

Lösung anzeigen
TESTE DEIN WISSEN
  • FC as base currency and HC as pricing (quoted) currency.
  • A higher level of the exchange rate means an appreciation of the FC and a depreciation of the HC, and vice versa.
  • Direct quotation is the equivalent to how we think about prices of other goods (“I need 800 € to buy this phone”).
Lösung ausblenden
TESTE DEIN WISSEN

Turnover by location:

Lösung anzeigen
TESTE DEIN WISSEN

1. United Kingdom

2. United States 

3. Singapore
4. Hong Kong
5. Japan
Lösung ausblenden
  • 257853 Karteikarten
  • 5231 Studierende
  • 90 Lernmaterialien

Beispielhafte Karteikarten für deinen International Finance Kurs an der Universität Frankfurt am Main - von Kommilitonen auf StudySmarter erstellt!

Q:

Difference between foreign exchange dealers and brokers:

A:

FX dealer: want to trade with Euro, Dollars, etc. 


FX brokers: platform with participants that bring matching partners together.

Q:

Foreign exchange customers

A:
  • Corporate customers
  • Retail customers
  • Financial institutions
  • Algorithmic, high-frequency traders
Q:

Many currencies of developed countries trade freely in the world’s foreign exchange markets (e.g., the euro, yen, dollar, pound) and their value is determined by market forces, demand and supply.

A:

TRUE!

Q:

Which one is TRUE?

Fixed rate system is…

A:
  • no separate legal tender (dollarisation)
  • Currency boards (ex. Bulgaria, Hong Kong)
  • Conventional pegs (ex. Saudi Arabia)
Q:

Name exchange rate systems belonging to limited flexibility:

A:
  • Target Zones (Denmark, Bolivia)
  • Managed floats (Thailand)
Mehr Karteikarten anzeigen
Q:

Name the flexible exchange rate system:

A:

Independently floating:

Example: US, UK, Japan

Q:

Define "No separate legal tender"!

A:

One kind of exchange rate regime is the No Separate Legal Tender regime. This can take the form of a currency union in which participating nations adopt a common currency, giving up their individual ones in the process. The second form is known as dollarization, when a nation decides to adopt the currency of another nation as its official currency.

Q:

Define a "Currency board"!

A:
  • A currency board is an extreme form of a pegged exchange rate.
  • Often, this monetary authority has direct instructions to back all units of domestic currency in circulation with foreign currency.
  • Currency boards offer stable exchange rates, which promote trade and investment.
  • In a crisis, a currency board can cause substantial damage by restricting monetary policy.
Q:

What's a direct quotation?

A:

How many units of domestic currency per unit of foreign currency?

Example:
For a US investor, 1.60 $/£ is a direct quote.

Q:

What's an indirect quotation?


A:

How many units of foreign currency per unit of domestic currency?

Example:
For a US investor, 0.625 £/$ is an indirect quote.

Q:

What does the direct quotation imply?

A:
  • FC as base currency and HC as pricing (quoted) currency.
  • A higher level of the exchange rate means an appreciation of the FC and a depreciation of the HC, and vice versa.
  • Direct quotation is the equivalent to how we think about prices of other goods (“I need 800 € to buy this phone”).
Q:

Turnover by location:

A:

1. United Kingdom

2. United States 

3. Singapore
4. Hong Kong
5. Japan
International Finance

Erstelle und finde Lernmaterialien auf StudySmarter.

Greife kostenlos auf tausende geteilte Karteikarten, Zusammenfassungen, Altklausuren und mehr zu.

Jetzt loslegen

Das sind die beliebtesten StudySmarter Kurse für deinen Studiengang International Finance an der Universität Frankfurt am Main

Für deinen Studiengang International Finance an der Universität Frankfurt am Main gibt es bereits viele Kurse, die von deinen Kommilitonen auf StudySmarter erstellt wurden. Karteikarten, Zusammenfassungen, Altklausuren, Übungsaufgaben und mehr warten auf dich!

Das sind die beliebtesten International Finance Kurse im gesamten StudySmarter Universum

International Financial Markets

Copenhagen Business School

Zum Kurs
International HR

Technische Hochschule Aschaffenburg

Zum Kurs
international

Hochschule für Wirtschaft und Umwelt Nürtingen-Geislingen

Zum Kurs
International

TU München

Zum Kurs
International Focus

Technische Hochschule Ingolstadt

Zum Kurs

Die all-in-one Lernapp für Studierende

Greife auf Millionen geteilter Lernmaterialien der StudySmarter Community zu
Kostenlos anmelden International Finance
Erstelle Karteikarten und Zusammenfassungen mit den StudySmarter Tools
Kostenlos loslegen International Finance