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TRUE OR FALSE. Please state your explanation.

51.

In a foreign currency swap, a customer who needs to borrow in foreign currency, receives the domestic currency today and swaps it back for the foreign currency just in time to repay the loan in the foreign currency.

TrueFalse

52.

A sight draft is a payment for purchase of goods and services across national borders which is payable only on a specific future date.

TrueFalse

53.

A time draft is a payment for purchase of goods and services across national borders which is payable upon presentation to the bank.

TrueFalse

54.

One way to determine the soundness of an international loan is to use the Delphi method which uses the consensus opinion of a panel of experts to develop a measure of a country's risk exposure.

TrueFalse

55.

The top trading firms in the global currency markets are all banks.

TrueFalse

56.

Internet-based banks are not allowed in some countries such as Japan.

TrueFalse

57.

The currency swap market is in decline following the introduction of the Euro.

TrueFalse

58.

China has the highest overall savings rate in the world.

TrueFalse

59.

An ETC is a device which aids customers in selling goods abroad.

TrueFalse

60.

The Eurobond market provides a firm with access to funds outside its home country.

TrueFalse

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