Match the following :

(a) Forward Exchange  (i) A device of covering exchange risk
against the price rise of foreign currency
(b) Hedging (ii) A contract to buy and sell foreign
exchange against another currency at
some fixed rate in the future at a price
agreed upon now
(c) Arbitrage  (iii) The movement of exchange rate
between two limits set by the cost of
moving gold from one country to another
(d) Specie point  (iv) A mechanism which makes. two
markets that are physically separate.
a single market in the economic sense.

Choose the correct option from those given below :

1
(a) - (ii), (b) - (i), (c) - (iv), (d) - (iii)
2
(a) - (ii), (b) - (iii), (c) - (iv), (d) - (i)
3
(a) - (iv), (b) - (i), (c) - (ii), (d) - (iii)
4
(a) - (iv), (b) - (iii), (c) - (ii), (d) - (i)

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