SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
Test your basic knowledge |
AP Foreign Exchange
Start Test
Study First
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. Domestic residents actively manage the foreign investment
Weak dollar
Net capital outflow
Balance of payment
Foreign direct investment
2. When countries buy/sell currency to attempt to control ER
Managed (dirty) ER
Nominal ER
Foreign direct investment
Net capital outflow
3. The notion that a good should sell for the same price in all markets
Determinants of exchange rates
Depreciation (weakening)
Law of one price
Balance of payment
4. Theory of exchange rates where a unit of any currency should be able to buy the same quantity of goods in all countries
Weak dollar
Purchasing power parity
Balance of payment
Free Floating ER
5. Domestic residents buy foreign stocks and bonds - supplying loanable funds to a foreign firm
Depreciation (weakening)
Foreign portfolio investment
Appreciation (strengthening)
Fixed ER
6. When the dollar buys little foreign currency (depreciating)
Real ER
Weak dollar
Purchasing power parity
Depreciation (weakening)
7. Decrease in the value of currency as measured by the amount of foreign currency it can buy
Foreign portfolio investment
Depreciation (weakening)
Law of one price
Strong dollar
8. Rate at which the g/s of one country trade for the g/s of another
Strong dollar
Net capital outflow
Appreciation (strengthening)
Real ER
9. When the dollar will buy a lot of foreign currency (appreciating)
Foreign direct investment
Net capital outflow
Strong dollar
Free Floating ER
10. An increase in the value of a currency as measured by the amount of foreign currency it can buy
Weak dollar
Foreign direct investment
Appreciation (strengthening)
Nominal ER
11. Domestic residents' purchase of foreign assets minus foreigners' purchase of domestic assets
Depreciation (weakening)
Net capital outflow
Real ER
Foreign direct investment
12. All determined by S/D of that foreign money
Law of one price
Free Floating ER
Managed (dirty) ER
Nominal ER
13. 1) changes in tastes - 2) relative income changes - 3) relative price changes - 4) relative interest rates - 5) expectations
Depreciation (weakening)
Determinants of exchange rates
Free Floating ER
Foreign portfolio investment
14. The rate at which one country's currency trades for another
Foreign portfolio investment
Nominal ER
Law of one price
Managed (dirty) ER
15. Record of a country's transactions in g - s - and assets with the rest of the world - also country's sources (supply)
Balance of payment
Determinants of exchange rates
Foreign direct investment
Foreign portfolio investment
16. When a gov artificially fixes the ER (poor/small countries)
Determinants of exchange rates
Balance of payment
Purchasing power parity
Fixed ER