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(1) Which of the following refers to foreign exchange? a. The act of trading different nations' moneys b. The holdings of foreign assets c. The act of exchanging goods and services internationally. d. The adoption of foreign trade policies (2) If the price of British pounds in terms of the U.S. dollars is $1.80 per pound, then the price of U.S. dollars in terms of British pounds is: a. 1.80 per dollar. b. 0.555 per dollar. c. 0.90 per dollar. d. 3.60 per dollar. (3) Which of the following is true for forward foreign exchange contracts? a. Common dates for future exchange are 50,100 , and 150 days forward. b. The actual currency exchange occurs after one week from the stated time period. c. They are used mostly to offset net asset positions held in the foreign currencies. d. They can be used for both speculation and hedging. 1 ( 5 ) (4) When the exchange rate is set now for a currency trade that will take place sometime more than a few days in the future is often referred to as a: a. spot exchange rate. b. forward exchange rate. c. pegged exchange rate. d. managed exchange rate