OBJECTIVE-TYPE QUESTIONS
  1. Mark true or false.
    1. Disparity between the real exchange rate and the nominal exchange rate does exist in the pegged exchange rate regime.
    2. Pegged exchange rate regime has insulation properties.
    3. Domestic currency is on the denominator in the direct quote.
    4. Ask/offer rate and selling rate carry the same meaning.
    5. Forward rate differential is greater in shorter maturities.
    6. The purpose of arbitrage is to minimise/eliminate exchange rate risk.
    7. Settlement date in spot market transactions falls after a week.
    8. Exporters are in a short position in respect of the currency they are to receive.
    9. Marking to market is found in forward market transactions.
    10. The intrinsic value of an options contract may be negative when it is out-of-money. ...

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