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Money and credit - Ivanov V.M.

test questions

1. How have clearing banks expanded their influence on international trade?

2. Definition of international credit.

3. The procedure for providing international credit.

4. Object and subjects of international credit.

5. Types of international credit.

6. Functions of the International Monetary Fund and the European Bank for Reconstruction and Development.

Tasks

1. A Ukrainian bank takes a loan from a British bank to buy 20,000 Canadian dollars. The spot exchange rate is 1.8495-1.8705.

How much do you need to take out a loan in pounds sterling so that a British bank sells Canadian dollars?

2. On the account of the "nostro" of the Ukrainian bank in the British is 14,500 pounds. According to the correspondent agreement, in case of insufficient funds on the account, the Ukrainian bank receives an overdraft at 10% per annum.

The country

Currency

Spot Course

One-month forward course

Three-month forward course

USA

Dollar

1,5200-1,5210

0.32-0.27 cent premium

0.89-0.84 cent discount

Canada

Dollar

1.8630-1.8640

0.30-0.20 cents premium

0.90-0.80 cents

prizes

Switzerland

Franc

62.20-62.30

10-20 cents discount

45-55 cents discount

Polshcha

Zloty

12.01-12.02

4 1/4 -6 7/8 cents discount

18 3/8 -19 3/4 cents discount

Germany

Euro

3.06 1 / 2-3.07 1/2

2-1 3/4 bonus cents

5% -5 bonus cents

Based on information about exchange rates in a British bank (see table), make the necessary calculations:

• buy $ 14,000 under a one-month forward contract;

• buy 25,000 Canadian dollars at the spot rate;

• buy 75,000 Swiss francs under a three-month forward contract;

• sell 20,000 Polish zlotys under a three-month forward contract;

• sell 6,000 euros for a one-month forward contract;

• determine the cost of the overdraft (if any);

• determine the cost of all transactions for customers of a Ukrainian bank, if the level of profitability on foreign exchange transactions should be 5%.