名词解释
Forward exchange rates：
A rate contracted today but with delivery and settlement in
the future, usually 30 or 90 days away.
Cross rate:The exchange rate between two currencies, derived from their exchange
rates with a third currency.
Indirect quote: An exchange rate quotation that gives the value of the domestic
currency in terms or units of the foreign currency.
Current Account : A component of the balance of payments covering all current
transactions that take place in the normal business of the residents of a country, such
as exports and imports, services, income, and current transfers.
A closed-end fund: An investment company with a fixed number of shares. New
shares cannot be issued and the old shares cannot be redeemed. Shares are traded in
the market place, and their value may differ from the underlying net asset value of the
fund..
Currency exposures: The sensitivity of the asset return, measured in the investor’s
domestic currency, to a movement in the exchange rate.
Electronic communication networks: Order-driven trading systems in which the
book of limit orders plays a central role.
Foreign bond: A bond issued by a foreign company on the local market and in the
local currency (e.g., Yankee bonds in the United States, Bulldog bonds in the United
Kingdom, or Samurai bonds in Japan).
International bond: A bond underwritten by a multinational syndicate of banks and
placed mainly in countries other than the country of the issuer.
Market efficiency: In an efficient market, any new information would be
immediately and fully reflected in prices.
简答
Quotation Conventions
First, there is no need to maintain a market in both euros against dollars and
dollars against euros. For any pair of currencies, it is sufficient to trade in a
single exchange rate. For example, the exchange rate between the pound and the
dollar is quoted as the dollar price of one pound.
Second, not all exchange rates are traded. In a world with a large number of
currencies, there are a very large number of cross exchange rates. For example, with
20 currencies, there are 380 bilateral exchange rates. The exchange rates between two
minor currencies are not traded on the Forex market, so a Forex trader could not find
on her trading screen the exchange rate between the South Korean won (won or KRW)
and the Brazilian real (R$ or BRL).
Third, Forex quotes always include a bid price and an ask price (or offer price),
and there is no commission or fee added on a trade. The bid price is the price at
which the foreign exchange dealer is willing to buy the quoted currency in exchange
for the second currency. The ask price is the price at which the dealer is willing to sell
the base currency in exchange for the second currency.
Factors Affecting the Financial Account
Changes in Real Interest Rates ：Financial flows are attracted by high expected
return. For debt securities, investors search for high real interest rates. An increase in
