金融英语第六章答案

Chapter 6

The Foreign Exchange Market

Exercises

Ⅰ. Answer the following questions in English.

1. How many common methods to express a foreign exchange rate?

Answer:There are two common methods to express a foreign exchange rate.

2. What is usefulness of settling account?

Answer:Business people will pay and recieive different currencies.Therefore, they must convert the currencies that they received into the currencies that

they could buy commodities.

3. How does stop order work?

Answer: Stop orders can be used to enter the market on momentuma or to limit the potential loss of a position.

4. What do you think about single currency system? Is it possible to establish

single currency system in the world now?

Answer：I think a single currency system，it means no foreign exchange market，no foreign exchange rates，no foreign exchange．

It is no possible to establish single currency system in the world now. Because in our world of mainly national currencies，the foreign exchange market plays the indispensable role of providing the essential machinery for making payments across borders，transferring funds and purchasing power

from one currency to another，and determining that singularly important price，the exchange rate．

5. What is limit order?

Answer: A limit is an order to buy or sell a currency at a specified price or better.

6. How to make money for many traders through foreign exchange market?

Answer：(一)You should have trading currencies with a strategy.

(1) Currency Trading is Only For Part of Your Investment Money

(2)You Must Limit Your Losses in Currency Trading

(3)Know the Trends of the Foreign Currency Market Before Trading

（二）Decide What Type of Currency Trader You Will be.

(1)Trade currendes in multiple lots

(2)Lose the urge to trade currencies every day

(3)Stick to your trading plan

Ⅱ.Fill in the each blank with an appropriate word or expression.

l. The currency trader should also decide the time __frame__ that he will be using to trade in order to determine which trend will be the most important. 2. The bid is the price at which dealers are willing to __buy__ dollars (base

currency) in terms of yen (quote currency) and users of our trading platform can __sell__ dollars in terms of yen.

3. The order remains active until the end of the trading day (5:00 PM EST),

unless it is __executed__ or canceled by the trader.

4. A GTC order remains active until it is canceled by the currency trader or until

the order is executed. It is the __trade’s__ responsibility to __cancel__ a

GTC order.

5. The Foreign Exchange Market is where the majority of buying and selling of

world __currencies__ takes place.

6. When placing a limit order, the trader also specifies the__duration__ for which

the order is to remain active while it is not executed.

Ⅲ.Translate the following sentences into English.

1.外汇交易市场，也称为“Forex”或“FX”市场，是世界上最大的金融市场，平

均每天超过1兆美元的资金在当中周转——相当于美国所有证券市场交易

额总和的30倍。

Translation: The Foreign Exchange market, is also called “Forex” or “FX” market.It is The largest financial market in the world with trading volumes surpass USD 1 million on Average day --the equivalent of turnover trading securities market

30 times the sum of the forehead.