Government Restrictions on the Amount of a Particular Country's Currency

question 88

Multiple Choice

Government restrictions on the amount of a particular country's currency that can be bought or sold are known as

• A) embargoes.
• B) quotas.
• C) exchange controls.
• D) import controls.
• E) balance of trade controls.

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Definitions:

Modified Duration

A measure that estimates how the price of a bond will change in response to a change in interest rates, adjusting for the bond's yield to maturity.

Convexity

The curvature of the price–yield relationship of a bond.

Yield

The annual percentage yield received from an investment, including interest or dividends, relative to the cost of that investment.

Rate Anticipation Swap

A switch made between bonds of different durations in response to forecasts of interest rates.