This page has been robot translated, sorry for typos if any. Original content here.

Money and Credit - V.M. Ivanov

test questions

1. What does the term "freely convertible currency" mean from a legal point of view?

2. Types of currency convertibility.

3. Conditions for the introduction of convertibility.

4. Determining the exchange rate.

5. Types of exchange rates.

6. Currency regulation instruments.

Tests for self-control

1. Currency convertibility is:

a) the reversibility of the national currency;

b) the ability of a given country's currency to freely exchange into currencies of other countries;

c) rules or restrictions on currency exchange;

d) the possibility of currency exchange with a specific statutory goal;

e) legal exchange of national currency for foreign;

e) answers a), c), d), e) are correct;

g) all the answers are wrong.

2. Types of currency convertibility:

a) internal;

b) current;

c) capital;

d) complete;

e) free;

e) limited;

g) answers a), b), c), d), e) are correct;

h) all answers are correct.

3. The introduction of convertibility requires the following conditions:

a) pricing by market method;

b) tolerable inflation;

c) the absence of a system of universal subsidies for goods and services;

d) price elasticity of supply and demand;

e) internationalization of monetary relations;

e) answers a), b), c), e) are correct;

g) all the answers are correct.

4. The exchange rate is:

a) the price of the currency;

b) currency exchange ratio;

c) the currency of the country, expressed in the currency of another country;

d) the price of the currency of one country, expressed in the currency of another country;

e) the price of the monetary unit, depending on the gold content;

e) answers a), b), e) are correct;

g) all the answers are wrong.

5. Currency quotes are:

a) contractual;

b) indirectly;

c) straight;

d) answers b), c) correct;

e) all the answers are correct.

Tasks*

1. The company "K" imports jeans from Italy in the amount of $ 32,000. The sale price of a consignment of goods in Ukraine is 200,000 UAH. At the time of signing the contract, the spot spot exchange rate was UAH 546 per $ 100.

Calculate the expected financial result from the import operation. How will the result change if the spot rate is 567 UAH for $ 100; 379 UAH for $ 100.

2. Company K (Ukraine) imports jeans from Poland and resells them in bulk in England, prices are fixed in price lists for 6 months. In January, jeans were bought for 90000000 zlotys, and the batch should be paid in March, the income from the sale will be 50,000 pounds sterling. When drafting a contract, the exchange rate in a British bank is 2410-2414. In March, the lira was purchased at the spot rate of 2112-2116.

Compare the originally expected and actual results from the resale of this consignment of goods. Find the margin on the exchange transaction, which receives a British bank. Determine the seller and buyer rates.

'Task 1 - for direct quotation of currency, task 2 - for indirect.