Test your basic knowledge |

AP Foreign Exchange

Subjects : AP, forex, industries
Instructions:
  • Answer 16 questions in 15 minutes.
  • If you are not ready to take this test, you can study here.
  • Match each statement with the correct term.
  • Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. The notion that a good should sell for the same price in all markets






2. When the dollar will buy a lot of foreign currency (appreciating)






3. Theory of exchange rates where a unit of any currency should be able to buy the same quantity of goods in all countries






4. When countries buy/sell currency to attempt to control ER






5. Record of a country's transactions in g - s - and assets with the rest of the world - also country's sources (supply)






6. The rate at which one country's currency trades for another






7. Domestic residents' purchase of foreign assets minus foreigners' purchase of domestic assets






8. 1) changes in tastes - 2) relative income changes - 3) relative price changes - 4) relative interest rates - 5) expectations






9. When the dollar buys little foreign currency (depreciating)






10. All determined by S/D of that foreign money






11. An increase in the value of a currency as measured by the amount of foreign currency it can buy






12. When a gov artificially fixes the ER (poor/small countries)






13. Domestic residents actively manage the foreign investment






14. Decrease in the value of currency as measured by the amount of foreign currency it can buy






15. Domestic residents buy foreign stocks and bonds - supplying loanable funds to a foreign firm






16. Rate at which the g/s of one country trade for the g/s of another