Identify trading hours when the currency pairs are moving either fast or slow. Explain your observations. Discuss how commodity, equity and bond market movements correlate with the currency pair movements.

Discuss the key differences between the operation of a currency forward market and a futures market.

Calculate a currency's foward premium or discount based on interest rate differentials.

What are the forward rates of interest? How are they determined? What do they have to do with indexes used to adjust ARM payments?

Which one of the theories states that “the rate of interest is set in the market for money balances”?    Time-Preference Theory of Interest   Liquidity Preference Theory     Fisher’s Law    Loanable Funds Theory of Interest Rates

Differentiate between each of the following pairs of terms. a. Money market and capital market b. Primary market and secondary market c. Broker market and dealer market

Repo Instruments, Term Money and Call Money are part of a. Forex Market b. Money market c. Capital Market d. Commodity Market

Market risks are: B. Interest rate risk, foreign exchange risk, portfolio concentration, commodity price risk D. Equity price risk, interest rate risk, foreign exchange risk, commodity price risk C. Foreign exchange risk, commodity price risk, issue risk, credit risk A. Equity price risk, transaction risk, foreign exchange risk, commodity price risk

Analyze the attached bar chart and comment on the behavior of the EUR/USD pair with reference to (i) bar chart, (ii) trading volume, (iii) trendlines, (iv) uptrend reversals, (v) downtrend reversals, and moving averages.

Due to ____, market forces should realign the relationship between the interest rate differential of two currencies and the forward premium (or discount) on the forward exchange rate between the two currencies. A. forward realignment arbitrage B. triangular arbitrage C. covered interest arbitrage D. locational arbitrage