Question : Which of the following is not a type of foreign exchange risk?

Option 1: Transaction risk

Option 2: Translation risk

Option 3: Political risk

Option 4: Economic risk

Question : Which of the following steps should taken by the central bank if there is excessive rise in the foreign exchange rate?

Option 1: Supply foreign exchange from its stock
 

Option 2: Demand more of other foreign exchange
 

Option 3: Not intervene in the market as exchange rate is determined by the market forces

Option 4: Help central government to stabilize foreign exchange rate

Question : Which of the following is not a type of foreign exchange rate risk?

Option 1: Transaction risk

Option 2: Translation risk

Option 3: Political risk

Option 4: Credit risk

Question : What is the term used to describe the rate at which a central bank buys or sells its own currency in the foreign exchange market?

Option 1: Spot exchange rate
 

Option 2: Nominal exchange rate
   

Option 3: Intervention exchange rate

Option 4: Forward exchange rate

Question : What is the term used to describe the process of converting one currency into another currency at a specific exchange rate for immediate delivery?

Option 1: Spot transaction
  

Option 2: Forward transaction
 

Option 3: Cross transaction

Option 4: Swap transaction