1. Exchange rates used in the exchange of bank deposits at some specified future date forward exchange rate
2. It states that if two countries produce an identical product and transportation costs and
trade barriers are very low the price of the product should be the same othroughout the
world no matter which country produces it. - law of one price (2)
3. It suggest that long-run changes in the exchange rate between two countries'
currencies are determined by the changes in relative price level in the two
countries.
purchasing
power
parity
(2)
(3)
4. It exist when a trader can purchase the asset in the market value where it is
available at a lower price and sell it in the market where it is available at a higher
price.
Arbitrage
opportunity
5. A central bank purchase domestic currency and corresponding sale of foreign assets equal
decline
(2)
6. If two countries produce an identical good, and transportation costs and trade barriers are
very low, the price of the good should be the same throughout the world no matter which
country produces it.- Law of one price
7. In a _________, a country intervene in the foreign exchange market in an attempt to
influence their exchange rate by buying and selling foreign assets - Managed float
exchanged
rate
system
8. A mortgage loan that originated by the same sources as insured loan but are not
guaranteed?
Conventional
mortgage
9. It provide financial service to the public particularly mortgages through capital mobility pass through? Government GSE
10. A type of mortgage that is designed to help the borrower pay off loan in a short period of
time
growing
equity
mortgage
(2)
(3)
11. A foreign exchange intervention with an offsetting open market operation that
leaves the monetary base unchanged. - Sterilized foreign exchange intervention (2).
12. An intervention in which the central bank allows the purchase or sell - unsterilized foreign
exchange intervention (2)
13. The exchange rate system of the Philippines - Managed floating? (2) (3)
14. A central bank sale of domestic currency to purchase foreign assets in the foreign
exchange
market
results
in
EQUAL
INCREASE
15. A type of mortgage where an outside investor rather than the lender shares in the
appreciation
of
the
property
equity
participation
mortgage
16. A type of mortgage that gives the borrower the benefit of a small payment at the beginning
while still retiring the debt early.- Growing equity mortgage (2) (3)PAANO GROWth
nKALAGAY SA CHOICES
17. A
type
of
mortgage
that
18. An account in the balance payments that reflect the trade balance. - current account ata
di
ko
sure(2)
(3)
(4)
19. Which of the ff is not a transaction in the current account of the balance of payments - C.
Purchase of stock
20. Exchange rate used in the exchange of bank deposits at some specified future dateforward exchange rate (2)
21. WHen a country’s currency appreciates
- False becomes expensive
22. When domestic interest rise due to an expected increase in inflation, the domestic
currency
appreciates
False
23. Anything that increases the demand for domestically produced goods that are traded
relative to foreign goods trend to depreciate the domestic foreigncy - false
24. An increase in domestic money supply will cause the domestic currency to appreciate false? (2) (3)
An increase in a country’s money supply causes its currency to depreciate in the foreign
exchange market, while a reduction in the money supply causes its currency to appreciate.
25. In a reverse annuity mortgage, loan comes due when the real estate is sold - TRUE
26. In an insured mortgage ,Loan is secured by a second lien against the real estate- False
(2)
second
mortgage
dapat
27. If a factor decreases the relative demand for domestic goods… domestic currency will
appreciate
False
(depreciate
dapat)
28. If a country’s productivity lags behind that of other countries, its traded goods becomes
more expensive and the currency tends to appreciate - FALSE DEPRECIATE DADPAT
29. A
decrease
30. Loan
in
is
domestic
interest
guaranteed
in
rate
causes
conventional
to……
depreciate-
mortgage
-
true
FALSE
31. Depreciation of a currency makes it easier for domestic manufacturers to sell their goods
abroad and makes foreign goods less competitive in domestic markets.- TRUE
32. An increase in domestic interest rate causes….. To appreciate- true
33. When
34. The
domestic
theory
of
currency
Purchasing
is
overvalued,
Power
parity
-
false
is
an
must
application
-
purchase
TRUE
(2)
35. Increasing trade barriers cause a country’s currency to depreciate in the long run - false
36. a fall in the current exchange rate causes an appreciation of the currency - false
37. When a country’s currency is undervalued, its central bank’s intervention to keep the
currency from appreciating leads to a gain of international reserves.- TRUE
38. A fall in the expected future exchange rate causes an appreciation of the currency FALSE
39. When
40. A
a
sterilized
country’s
currency
intervention…..
appreciates
Domestic
currency-
FALSE
false
41. The theory of purchasing power parity is an application of the law of one price to national
price level - True